South Korea Tightens Cryptocurrency Regulations with 5-Minute Reconciliation Rule

South Korean authorities have implemented a significant overhaul of the country's cryptocurrency regulations in response to recent security concerns.

The new rules require exchanges to conduct automated reconciliations with wallet balances every five minutes, allowing for swift identification and mitigation of discrepancies. This enhanced monitoring will be complemented by more frequent external audits, increased transparency through daily public reports, and robust risk control mechanisms.

The reforms also introduce stricter internal controls, including regular inspections every six months and mandatory disclosure of inspection findings to regulators. Exchanges will be required to establish dedicated risk management teams and implement standard risk management procedures.