South Korea plans bank-level liability for crypto exchanges after the Upbit hack, requiring no-fault compensation, tougher IT standards, and fines up to 3% of revenue for security failures.

"The Financial Services Commission (FSC) is reviewing new provisions that would require exchanges to compensate customers for losses stemming from hacks or system failures, even when the platform is not at fault, The Korea Times reported on Sunday, citing officials and local market analysts. The no-fault compensation model is currently applied only to banks and electronic payment firms under Korea’s Electronic Financial Transactions Act."

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