Financial Regulator to Inspect Security of Domestic Exchanges Following $6.3 Billion Unauthorized Withdra

South Korea's Financial Services Commission convened a security review meeting on December 2 with domestic virtual asset exchange officials, prompted by Binance's disclosure of an unauthorized withdrawal of approximately $6.3 billion (about 8.41 trillion won) from a hot wallet breach announced October 30. The meeting included representatives from won-based exchanges Upbit, Bithumb, and Coinone, as well as Coinmarket, with discussions focused on security management status and user asset protection measures. Regulators and industry participants flagged the need to examine asset custody ratios alongside transaction approval procedures. Binance said its initial investigation found no evidence that private keys were compromised, with early findings pointing to an employee laptop breach. The incident has put Korean exchange security practices under regulatory scrutiny. Watch for follow-up measures from the FSC and whether domestic exchanges announce changes to custody and approval protocols.