February 12, 2026

South Korea’s FSS to Intensify Crypto Oversight Following Bithumb’s 620,000 BTC Error

South Korea's FSS to Intensify Crypto Oversight Following Bithumb's 620,000 BTC Error

South Korea’s Financial Supervisory Service announced plans to tighten oversight of the cryptocurrency market, aiming to curb market manipulation and impose stricter penalties following incidents that have jeopardized market integrity. This move comes in response to a recent high-profile error at Bithumb, one of the country’s largest crypto exchanges, which accidentally transferred a large amount of Bitcoin during a promotional event. The regulatory agenda aligns with South Korea’s efforts to enhance its crypto framework through the upcoming Digital Asset Basic Act, which will provide comprehensive guidelines for token issuance and stablecoin operations to better protect consumer interests.

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