South Korea tells crypto exchanges to increase cold storage after Binance hack

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South Korea’s Financial Services Commission (FSC) has called on domestic cryptocurrency exchanges to hold a larger share of customer assets in cold wallets following last week’s $6.3 billion Binance hack.

The regulator held an emergency meeting on Monday with the Financial Supervisory Service, the Financial Security Institute, industry group DAXA and major crypto providers. Officials reviewed exchanges’ IT access controls, withdrawal approval processes, transaction signing procedures and administrator privileges.

The attack targeted Binance’s internet-connected hot wallets, with hackers stealing about $6.3 billion and moving most of the funds within 20 minutes, according to TRM Labs. South Korean law already requires exchanges to keep at least 80% of customer crypto assets in cold storage, but the share varies among major platforms.