South Korea mulls punitive fines of up to 10% of revenue for hacked exchanges

South Korea’s Financial Services Commission (FSC) is developing regulations that would hold cryptocurrency exchanges strictly liable for damages from hacking incidents, MTN News reported. The regulator is also considering imposing punitive fines of up to 10% of an exchange's revenue. The proposal has drawn criticism from the industry. An official from the virtual asset sector noted that the 10% fine is more than three times the maximum 3% penalty applied to electronic financial businesses under the amended Electronic Financial Transactions Act, calling the proposed standard excessive for virtual asset service providers.