South Korea to require crypto firms to report security incidents to financial regulators

Cointime update: South Korea’s Financial Services Commission announced on Nov. 5 that it will draft new guidelines requiring virtual asset service providers to notify the Financial Supervisory Service and the Financial Security Institute immediately upon discovering a security incident. Currently such firms only report to the Korea Internet & Security Agency. The FSC also plans a Digital Financial Security Act, targeting legislation by Q1 2027, to apply security rules comparable to the Electronic Financial Transactions Act to crypto firms, insurance agencies and lenders.