South Korea’s Crypto Exchanges: No-Fault Liability Ahead
South Korea is on the verge of a significant regulatory change for cryptocurrency exchanges: no-fault liability. This is a big deal considering the recent history of hacks and the need for user protection. But will this actually help users, or will it make exchanges less careful?
What is No-Fault Liability?
Starting soon, exchanges will have to compensate users for losses from hacks or system failures, regardless of whether they were at fault. This is in direct response to the November 2025 Upbit hack that resulted in the loss of around KRW 44.5 billion in Solana assets. Basically, it makes the crypto market a bit more like traditional banking in terms of user protection.
The Good and The Bad
On the surface, this seems like a win for…
