South Korea Orders Crypto Exchanges to Verify Customer Balances Every 5 Minutes
South Korea’s financial regulator has mandated that all licensed crypto exchanges perform balance checks and verifications of customer assets at five-minute intervals, a move announced in response to a major overpayment incident earlier this year that undermined trust in the market. The directive aims to close operational gaps that allowed erroneous payments and to provide near-real-time visibility into exchange liability positions.
The rule raises operational and technical demands for trading platforms, which will need to bolster reconciliation systems and monitoring infrastructure. Regulators say the measure is intended to restore investor confidence and prevent repeat failures, but industry participants warn it could increase costs and complexity—especially for smaller operators—while introducing tighter controls that may affect liquidity and execution speed. Market watchers will be watching how exchanges implement the checks and whether the mandate measurably improves customer protections.