South Korean Regulatory New Rule Requires Crypto Exchanges to Verify Asset Holdings Every 5 Minutes

BlockBeats News, April 7th, according to Cointelegraph, on April 7th, the Financial Services Commission (FSC) of South Korea announced that after discovering internal control vulnerabilities in several major exchanges, it has ordered all cryptocurrency exchanges to reconcile their internal ledgers with actual asset holdings every 5 minutes.

This regulatory action was triggered by the Bithumb abnormal payment incident. In February of this year, Bithumb mistakenly distributed 620,000 bitcoins to 249 users during a promotion. On the same day, 99.7% of the funds were recovered, and the remaining 0.3% (1,788 BTC) was covered by the company's reserves. An inspection revealed that three of the top five Korean exchanges only reconciled once every 24 hours, limiting their ability to quickly respond to reconciliation discrepancies. Furthermore, these exchanges' systems for suspending trading in response to major ledger mismatches were also found to be inadequate.