WatcherGuru
South Korea is considering requiring crypto exchanges to hold 99% of customer assets in cold wallets, following a $6.3 billion Binance hack, according to the seed report.
Why it matters
Cold wallets keep crypto offline, reducing exposure to remote attacks. A 99% threshold would set a stringent custody requirement for exchanges operating in South Korea.
Market impact
The proposal could raise compliance demands for exchanges if adopted. The seed does not specify the proposal's timing or implementation details.
Frequently asked questions
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What cold-wallet threshold is South Korea considering for exchanges?
South Korea is considering requiring crypto exchanges to hold 99% of customer assets in cold wallets.
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What event preceded consideration of the proposed requirement?
The consideration followed a $6.3 billion Binance hack, according to the seed.
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Why would a cold-wallet requirement matter for customer assets?
Cold wallets keep crypto offline, reducing exposure to remote attacks.
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How could the proposed rule affect South Korean exchanges?
If adopted, the requirement could raise compliance demands for exchanges operating in South Korea.
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Has South Korea adopted the 99% cold-wallet requirement?
The seed says South Korea is considering the requirement; it does not say that the rule has been adopted.
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