South Korea's Democratic Party formalizes push to decentralize exchange governance

South Korea's Democratic Party has formalized its plan to push for the decentralization of virtual asset exchange governance, Digital Asset reported. At a parliamentary countermeasures meeting on Feb. 10, Han Jeong-ae, the party's policy committee chairperson, said the party would swiftly advance a digital asset basic act to improve structural problems at exchanges and build a trustworthy trading foundation. She stated the legislation would address systemic weaknesses by mandating internal control standards, requiring periodic external audits of exchanges' digital asset holdings, implementing no-fault liability for service providers in case of system failures, and introducing suitability reviews for major shareholders. Regarding a recent incident where Bithumb mistakenly sent excess Bitcoin to a user, Han commented that it was more than a simple operational error and exposed vulnerabilities in the exchange's ledger and internal control systems. She added that the event confirmed that even the country's top three firms have weaknesses in their verification systems, multi-confirmation procedures, and human error controls.