South Korea mulls raising CEX cold wallet requirement to 99% after Binance hack

[sergiorus]

So far only the official source is one of the biggest Korean MSM.

Translated from Korean and summarised via AI:

According to News1, South Korea’s Financial Services Commission is considering raising the minimum cold wallet storage requirement for crypto exchanges from 80% to around 99% following the recent Binance hack.

Upbit reportedly holds over 99% of customer assets in cold wallets, compared with roughly 94% at Bithumb and 85% at Coinone.

Industry participants warn that stricter requirements could delay withdrawals and increase operational burdens, particularly for smaller exchanges.

The proposal remains under discussion and has not been adopted.

Source: https://www.news1.kr/finance/blockchain-fintech/6341324


Perhaps going to become a world standard pretty soon, with withdrawals being processes just a few times a day.

If some OGs remember, during the BitMEX glory days they would process withdrawals only once a day but it was the largest perp exchange in the world back then and at least the users felt somewhat safe about it.

[Chibit01]

This should be a new standard if it's going to help not just with exchanges, but such could also be considered for casinos and any service that holds money in their hot wallet. It might affect withdrawal processing time, but it's better delayed than gone forever, at least since people are so free and find it convenient to be using centralised exchanges as custody they should be ready for what ever pattern that's taken to make sure their funds are secured.

[Oshosondy]

When I read the news in the morning like 10 hours ago, I was thinking if that can be possible. This will make withdrawal to be very slow on the centralized sites.

I think crypto developers should work on onchain rules that can let anyone that generate an address to be able to have just one address rule in a way no other address any coin sent to the certain address the person set can be sent to. This will reduce hacks significantly.

[Yamane_Keto]

Perhaps going to become a world standard pretty soon, with withdrawals being processes just a few times a day.

1% customer assets in a hot wallet is too low and can lead to delays in processing withdrawals and require more interaction with cold wallets, increasing the likelihood of private key leaks. 80% or 90% are reasonable.