South Korea Mandates Frequent Ledger Reconciliation for Crypto Exchanges

South Korea has implemented new regulations requiring cryptocurrency exchanges to reconcile their internal ledgers with actual asset holdings every five minutes. According to NS3.AI, this decision comes after an inspection revealed weaknesses in internal controls. The Financial Services Commission noted that three of the country's five major exchanges were previously reconciling balances only once every 24 hours, and their systems for halting trading were insufficient to address significant mismatches. This review was prompted by Bithumb's erroneous payout of 620,000 BTC in February. The Financial Services Commission aims to finalize these rule changes by April this year.