South Korea Proposes 99% Cold Wallet Requirement for Crypto Exchanges
South Korea may require crypto exchanges to store up to 99% of customer assets offline following recent security incidents.
South Korea may require crypto exchanges to store up to 99% of customer assets offline following recent security incidents. This is an original Token Times brief synthesising 4 outlets (TronWeekly, Cointelegraph, The Block, and others), with their figures cross-checked, plus live market data, as of Wed, 04 Nov 2026 03:15:01 UTC.
This proposal aims to enhance security for customer funds by drastically reducing the risk of online attacks, but could significantly impact exchanges' operational efficiency and withdrawal processes.
- South Korea may raise cold wallet requirement from 80% to 99% for crypto exchanges.
- Proposal follows recent Binance hack and aims to improve asset security.
- Change could significantly affect exchange operations and withdrawal procedures.
Both TronWeekly and Cointelegraph confirm that South Korea is considering increasing the minimum cold wallet requirement for crypto exchanges from 80% to 99%. They agree that this proposal follows recent security incidents and is currently under discussion. However, TronWeekly provides more detail on the potential impact on custody and withdrawal processes, while Cointelegraph emphasizes the regulator's push for increased security measures.
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- South Korea Proposes 99% Cold Wallet Requirement for Crypto Exchanges — this brief
South Korea is considering a significant increase in the minimum percentage of customer crypto assets that exchanges must store in cold wallets. The proposal would raise the requirement from the current 80% to approximately 99%, according to TronWeekly and Cointelegraph.
This move comes in the wake of recent security incidents, including the Binance hack, and reflects the regulator's growing concern over the vulnerability of online crypto storage. The proposal is currently under discussion and has not yet been adopted, but it signals a potential shift towards more stringent security measures for digital asset custody.
Currently, South Korean crypto exchanges are mandated to hold at least 80% of customer assets in cold wallets, a policy that has been in place to protect against hacking attempts. The proposed increase to 99% would represent a substantial tightening of these regulations.
The change could have significant implications for how exchanges manage their operations. While it would enhance security by minimizing exposure to online threats, it could also complicate withdrawal processes and increase operational costs for exchanges. The exact implementation details and timeline for the new rule remain unclear.
In the broader market context, the total crypto market cap stands at $2.65 trillion, with 
Bitcoin showing a modest 24-hour gain of 0.04%. The market remains relatively stable, with a Fear & Greed index of 34 indicating a 'Fear' sentiment among investors.
1 key figure independently matched across 2 outlets reporting this story.
Token Times extracts the figures each outlet reports and flags the ones that agree. Numbers cited by only one outlet are attributed in the brief, not shown as corroborated.
South Korea Proposes 99% Cold Wallet Requirement for Crypto — questions & answers
What is the current cold wallet requirement for South Korean crypto exchanges?
Exchanges are currently required to hold at least 80% of customer assets in cold wallets.
Why is South Korea considering this change?
The proposal follows recent security incidents and aims to enhance protection of customer funds.
How would this affect crypto exchanges?
It could improve security but complicate withdrawal processes and increase operational costs.
Which outlets reported this story?
This is an original Token Times brief that synthesises reporting from TronWeekly, Cointelegraph, The Block, Unchained, with the key figures cross-checked for agreement across them. It is not a copy of any one article — follow the source links above for the original reporting.
Original summary — not financial advice. This is an original Token Times brief that summarises a development reported elsewhere and adds live market data for context; it is not the original article and reproduces no part of it. Follow the source link above for full details. Crypto is volatile and high-risk — always do your own research.