Korea to allow crypto exchanges to block transactions without prior notice in emergencies

A South Korean financial regulator is adding a clause to the Virtual Asset User Protection Act that allows crypto exchanges to block deposits and withdrawals immediately for "justifiable reasons," according to SBS Biz. These reasons include instances of hacking, suspected money laundering or fraud, without prior notice to users. For these cases, users will not be notified prior to the action but will be informed afterward. This approach is designed to swiftly address urgent situations. The Financial Supervisory Service (FSS) has accepted this industry request but emphasized that giving prior notice should remain standard practice. The decision to block without prior notice has to be made carefully, considering the nature and urgency of each situation, the FSS added.