South Korea lets crypto exchanges freeze withdrawals on suspicion of hacking

The Financial Services Commission plans a no-action letter so platforms can halt deposits and withdrawals before a breach is confirmed South Korea’s crypto exchanges may soon be allowed to act on a bad feeling. The Financial Services Commission (FSC) plans to let platforms suspend deposits and withdrawals when hacking is suspected, without waiting for a breach to be confirmed. The FSC said on Thursday that it would issue a no-action letter allowing preventive suspensions under certain conditions. A no-action letter is a regulator’s written promise not to penalize a specific behavior. The research findings date the announcement to November 12, 2026. The shift moves the trigger point from “confirmed breach” to “suspected breach.” That is a meaningful change for platforms that often get only minutes to respond to an attack.

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