South Korean Exchanges May Now Store 99% of Customer Assets in Cold Wallets Post $6.3B Binance Hack

South Korea’s financial regulator is weighing stricter custody rules for cryptocurrency exchanges after the record $6.3 billion Binance hack, according to reports of an emergency meeting held this week. The Financial Services Commission convened major domestic platforms, the Financial Supervisory Service and industry groups on November 2nd to review security practices after unauthorized withdrawals from Binance hot wallets. They urged exchanges to raise the proportion of customer assets kept in cold storage, offline and disconnected from the internet, alongside tighter access controls, continuous monitoring of deposits and withdrawals, and stronger incident-response measures.