South Korean financial authorities discuss raising exchange
On November 2, 2026, South Korea's Financial Services Commission held an emergency security inspection meeting with major exchanges and custodians, using the Binance theft incident as an opportunity to discuss raising the cold wallet custody ratio from the current requirement of above 80% to around 99%. Upbit is already above 99%, while Bithumb is at about 94%. Industry insiders warn that this could cause withdrawal delays and increase the burden on small and medium-sized exchanges; the plan has not yet been finalized.
Event Timeline
- [11-03 13:01] South Korean financial authorities plan to raise the cold wallet custody ratio requirement for exchanges to 99% (PANews)
- [11-03 13:03] Proposal to raise exchange cold wallet custody ratio requirement to 99%, South Korean financial authorities discuss adjustment (Odaily)
Background and Impact
On November 2, 2026, South Korea's Financial Services Commission (FSC) held an emergency security inspection meeting with major cryptocurrency exchanges and custodians to discuss raising the cold wallet custody ratio for exchanges. According to industry sources cited by PANews and Odaily on November 3, the meeting was prompted by the Binance theft incident. The plan currently under consideration is to raise the existing requirement of above 80% under the Act on the Protection of Virtual Asset Users to around 99%, a level maintained by some large exchanges. Both sources said the plan is still under discussion and has not been finalized.
Looking at the current situation disclosed by each company, cold wallet custody ratios vary significantly among exchanges. Upbit's cold wallet custody ratio for user assets exceeds 99%, Bithumb is about 94%, Coinone is 85%, and exchanges such as GOPAX are in the low 80s. This means that if 99% is used as a uniform reference, most exchanges other than Upbit would need to adjust their asset storage structures, while some exchanges are currently only slightly above the existing statutory minimum of 80%.
Industry insiders warn that raising the ratio will reduce the hot wallet assets available for instant withdrawals, potentially causing withdrawal delays and increasing the operational burden on small and medium-sized exchanges. The reports mentioned a precedent: in August this year, Bithumb experienced withdrawal delays of about 13 hours for some altcoins due to insufficient hot wallet balances. In the industry's view, this was a direct consequence of insufficient hot wallet liquidity and is also the main argument in this discussion against a one-size-fits-all increase in the ratio.
For ordinary users, it is necessary to distinguish between two types of information: one is exchange platform access channels, with common searches including OKX account opening tutorials, Binance wall-free URLs, Binance domestic access, Binance mirror URLs, OKX wall-free URLs, and so on; the other is changes to the asset custody structure itself, which is the actual subject of this FSC meeting. Neither source mentioned a specific implementation timetable, nor whether transition periods or differentiated requirements would be set for exchanges of different sizes. Further developments still await official confirmation.
Frequently Asked Questions
### Will the 99% ratio requirement take effect immediately?
No. Both sources clearly stated that the plan is still under discussion and has not been finalized, and neither mentioned an implementation timetable, transition period arrangements, or whether exchanges of different sizes would be treated differently.
### What impact will raising the cold wallet ratio have on ordinary users?
The industry warns that hot wallet assets available for instant withdrawals will decrease, potentially causing withdrawal delays. In August this year, Bithumb experienced withdrawal delays of about 13 hours for some altcoins due to insufficient hot wallet balances, which is regarded as a direct precedent.
### What are the current cold wallet custody ratios of major South Korean exchanges?
According to industry sources, Upbit's cold wallet custody ratio for user assets exceeds 99%, Bithumb is about 94%, Coinone is 85%, and exchanges such as GOPAX are in the low 80s; the existing statutory requirement is above 80%.