The post South Korea’s Bold Move To Shield Crypto From Hacks appeared on BitcoinEthereumNews.com.

In a decisive response to rising cyber threats, South Korea is taking a monumental step. The nation’s Financial Services Commission (FSC) is pushing for a groundbreaking Digital Financial Security Act. This move aims to fortify the defenses of virtual asset service providers against devastating hacks. The recent Upbit incident, which saw losses of over $32 million, served as a stark catalyst for this legislative push. For investors and industry players, this signals a new era of accountability and security in one of the world’s most active crypto markets. What is the Digital Financial Security Act and Why Now? The proposed Digital Financial Security Act represents a comprehensive legal framework designed to prevent crypto hacks. South Korea’s FSC disclosed this plan in a December business report to the presidential office. The commission explicitly cited the Upbit hack as a key example of the vulnerabilities in the current system. Therefore, the act seeks to create a unified security standard for a broad range of entities, including: Traditional financial companies Electronic financial service providers Virtual asset service providers (VASPs) like exchanges This legislation is not just a reaction but a proactive measure. It aims to build a resilient digital finance ecosystem that can withstand sophisticated attacks. How Will This New Act Prevent Future Crypto Hacks? The core mission of the Digital Financial Security Act is prevention. By establishing mandatory security protocols, the FSC hopes to close the gaps that hackers exploit. The act will likely mandate stringent cybersecurity measures, such as cold storage requirements for customer funds and regular penetration testing. Moreover, the FSC plans to strengthen its response system for new types of financial crimes. This enhanced system will specifically target: Cross-border crime: Tracking illicit fund flows across jurisdictions. Money laundering: Implementing stricter Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks for crypto…

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Filed under: News - @ December 19, 2025 8:25 am