South Korea Plans Immediate Crypto Incident Reporting to Two Agencies

South Korea’s Financial Services Commission (FSC) announced Nov. 5 that it would prepare guidance requiring virtual asset service providers to notify the Financial Supervisory Service (FSS) and Financial Security Institute (FSI) immediately after becoming aware of a security incident. The change would add the two financial agencies to existing reporting to the Korea Internet & Security Agency (KISA).

The policy is intended to speed investigations, information sharing and consumer protection as links between digital-asset and financial businesses grow.

Financial authorities aim to complete legislation and submit a bill for the proposed Digital Financial Security Act by the first quarter of 2027. The law would set security requirements comparable to those under the Electronic Financial Transactions Act for virtual asset providers, insurance agencies and money-lending businesses. The named sectors hold large amounts of customer data or could pose a risk of large-scale asset losses.

The plans accompany a security review of about 580 financial companies, including virtual asset businesses.