---
title: South Korea will let crypto exchanges freeze deposits and withdrawals when a hack is only suspected, and wants bank-level security from them | ctxsec
url: https://ctxsec.com/items/korea-fsc-no-action-letter-crypto-exchanges-may-freeze-withdrawals-on-suspected-hack-nov-12
description: "At a Nov 12 security meeting with exchanges and custodians, Korea's Financial Services Commission said it will issue a no-action letter so exchanges can preemptively block deposits and withdrawals when hacking or a breach is suspected; current law allows blocking only when a hack is evident. It also set emergency guidelines: 24/7 monitoring and response (or handle withdrawals only during staffed hours, with notice to users), keep hot-wallet holdings to the minimum needed and spread them across wallets, raise insurance limits and reserves, and meet the IT-safety duties banks have under the Electronic Financial Transactions Act. It wants all 28 operators to join the Financial Security Institute (only five won-market exchanges have), and plans exchange-specific security inspection criteria this year."
status: "official (Korea Financial Services Commission press release, Nov 12, 2026)"
published: 2026-11-12
---

> At a Nov 12 security meeting with exchanges and custodians, Korea's Financial Services Commission said it will issue a no-action letter so exchanges can preemptively block deposits and withdrawals when hacking or a breach is suspected; current law allows blocking only when a hack is evident. It also set emergency guidelines: 24/7 monitoring and response (or handle withdrawals only during staffed hours, with notice to users), keep hot-wallet holdings to the minimum needed and spread them across wallets, raise insurance limits and reserves, and meet the IT-safety duties banks have under the Electronic Financial Transactions Act. It wants all 28 operators to join the Financial Security Institute (only five won-market exchanges have), and plans exchange-specific security inspection criteria this year.

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official (Korea Financial Services Commission press release, Nov 12, 2026)

2026-11-12 7:40 AM ET

### South Korea will let crypto exchanges freeze deposits and withdrawals when a hack is only suspected, and wants bank-level security from them

- The FSC cites the Binance hack as showing that fast blocking is decisive; it follows the Nov 6 GOPAX trading halt.
- The planned Digital Asset Act would give exchanges bank-like security duties and liability for damages.

Sources: [Financial Services Commission (Korea) press release, Nov 12, 2026: security measures for virtual asset service providers](https://www.fsc.go.kr/no010101/88133)