South Korea’s Financial Services Commission (FSC) has ordered sweeping operational reforms for domestic crypto exchanges following a high-profile payout error at Bithumb, which has also pushed its initial public offering plans to 2028 or later. The new rules introduce five-minute reconciliation cycles, monthly external audits, and stricter controls for high-risk activities across the industry.
FSC Orders Five-Minute Reconciliation, Monthly Audits
The FSC said on Monday that all crypto exchanges operating in South Korea must reconcile internal ledgers with on-chain and custodial wallet balances every five minutes. The directive follows an emergency inspection prompted by a February incident at Bithumb, where the exchange mistakenly distributed bitcoin to 249 users during a rewards promotion. Bithumb said it recovered nearly all of the funds the same day and covered the remainder with company capital.
Under the new requirements, exchanges must:
- Automate five-minute reconciliation between ledger records and actual wallet balances.
- Establish clear thresholds that automatically halt trading when discrepancies are detected.
- Subject high-risk activities (such as promotional payouts) to third-party review and multi-level internal approval.
- Segregate high-risk accounts and implement automated payment verification tools.
- Undergo monthly, not quarterly, external audits.
- Publish detailed breakdowns of asset balances by both wallet and ledger.
The FSC said it is working with the Digital Asset eXchange Alliance (DAXA) to finalize the updated standards by the end of April.
Inspection Exposes Industry Gaps
The regulator’s inspection found that three of South Korea’s five largest exchanges had been reconciling their books only once every 24 hours. Systems designed to pause trading during material mismatches were also deemed inadequate. The tighter cadence and automated safeguards are aimed at minimizing operational risk and protecting customer assets.
Bithumb Pushes IPO to 2028 or Later
Amid heightened scrutiny, Bithumb has delayed its planned stock market listing from an original 2025 target to 2028 or later. The company has retained advisory firm Samjong KPMG and said it will concentrate through 2027 on upgrading accounting systems, internal controls, and financial policies before reattempting a public offering.
Naver–Dunamu Share Swap Delayed as Oversight Tightens
Separately, Naver Financial has postponed its planned share swap with crypto firm Dunamu by roughly three months. A shareholder vote is now scheduled for August 18, with the transaction expected to close by September 30.
South Korea remains one of the most active jurisdictions in regulating digital asset markets. The latest mandates signal intensifying oversight and less tolerance for operational lapses across the country’s crypto trading platforms.