South Korea's Financial Services Commission Plans to Increase Cold Wallet Custody Ratio to 99%

On November 2, the Financial Services Commission (FSC) of South Korea held an emergency security inspection meeting with major cryptocurrency exchanges and custodians to discuss increasing the cold wallet custody ratio for exchanges. The current ratio stipulated by the Virtual Asset User Protection Act is over 80%, and it is proposed to raise it to around 99%, which is maintained by some large exchanges. Upbit has a cold wallet custody ratio exceeding 99%, Bithumb is around 94%, Coinone is at 85%, and exchanges like GOPAX are just above 80%. Industry insiders warn that increasing the ratio will reduce the assets available in hot wallets for immediate withdrawals, which may lead to withdrawal delays and increase the operational burden on smaller exchanges. Bithumb previously experienced withdrawal delays of about 13 hours for some altcoins due to insufficient hot wallet balances. This proposal is still under discussion and has not yet been finalized.

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