Virtual Asset Operators Required to Notify Financial Supervisory Service and Financial Security Institute Immediately After Hacking

The financial authorities will establish guidelines in November requiring virtual asset operators to immediately notify the Financial Supervisory Service (FSS) and the Financial Security Institute (FSI) upon recognizing a security breach. The Financial Services Commission (FSC) announced this security system innovation plan during a meeting held on the 5th. Currently, virtual asset operators are required to report security incidents to the Korea Internet & Security Agency (KISA), and the financial authorities have determined that it is necessary to also notify the FSS and FSI for incident investigation and information sharing. When a security incident is recognized, virtual asset operators must notify KISA, the FSS, and the FSI of the incident details, which should include the time of recognition, nature of the incident, and expected types and scale of damage. Additionally, the financial authorities plan to strengthen security regulations for virtual asset operators and prepare the 'Digital Financial Safety Act' to apply security regulations to sectors that hold customer information or have a high risk of customer asset loss in the event of a security incident. The financial authorities will also conduct a comprehensive security inspection of 580 financial institutions, and from September 30 to November 3, 40 security incidents were reported from 37 financial companies, three of which occurred in the virtual asset sector.

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