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BTCC / BTCC Square / Global Cryptocurrency /
South Korea Tightens Crypto Regulations After Bithumb Exchange’s $40 Billion Error

South Korea Tightens Crypto Regulations After Bithumb Exchange’s $40 Billion Error

Author:
Global Cryptocurrency
Published:
2026-02-09 13:57:07
18
2
Bithumb exchange News -

South Korean regulators are increasing oversight of cryptocurrency exchanges following a massive operational error at Bithumb that revealed systemic weaknesses. In February 2026, the platform accidentally distributed $40 billion in bitcoin as promotional rewards, causing chaotic market conditions before 99.7% of the funds were recovered.

The Financial Supervisory Service (FSA) has responded by enhancing protections under the Virtual Asset User Protection Act. New measures require stricter custody of customer assets and deploy AI surveillance to combat market manipulation. Offshore exchanges now face app store restrictions unless they comply with local registration requirements.

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