South Korea tightens crypto rules after big mistake at Bithumb

South Korea’s financial watchdogs are making crypto exchanges check their records more often after a serious error at Bithumb last year. Instead of waiting a full day to update their numbers, exchanges now have to sync their digital ledgers with real assets every five minutes. This rule came after inspectors found that some major platforms weren’t catching mistakes fast enough. The push for stricter checks started after Bithumb accidentally sent 620, 000 Bitcoin to random users during a giveaway. The exchange managed to claw back most of it the same day, but not all. Now, regulators want exchanges to stop trading automatically if big differences appear in their records. They’re also requiring extra checks for risky activities, like payouts to users.Exchanges will now face tougher rules on how they handle money. Instead of quarterly audits, they’ll need monthly reviews. They also have to share more details about where coins are stored and how they move. These changes are supposed to stop another big mistake before it happens. Bithumb isn’t the only one feeling the pressure. The exchange pushed back its plan to go public until after 2028, partly because of these new rules. Other crypto businesses are also adjusting their timelines to meet the tighter standards.