Crypto exchanges – The Shib Daily

South Korea to Apply Bank-Level Liability to Crypto Exchanges After Upbit Hack

Michaela — Mon, 08 Dec 2025 07:36:09 +0000

South Korea has reportedly moved to hold cryptocurrency exchanges to the same standards as traditional banks, introducing no-fault compensation rules and stricter regulatory oversight. The push comes after a recent security breach at the country’s major exchange, Upbit, spotlighting gaps in consumer protection and compliance within the growing crypto market.

According to the Korea Times, South Korea’s Financial Services Commission (FSC) is reviewing rules that would require cryptocurrency exchanges and other virtual asset providers to compensate users for losses caused by hacks or system failures, even if the platform is not found at fault. Currently, this no-fault standard applies to financial institutions and electronic payment firms.

The FSC’s push follows a late November hack at Upbit, where over 104 billion Solana-based tokens, valued at around $30 million, were moved to external wallets in under an hour. Reports indicate that more than 900 users were affected, and under current regulations, Upbit has not been required to provide compensation.

The FSC’s proposed regulations aim to hold cryptocurrency exchanges accountable for compensating users affected by hacks or system failures, aligning their responsibilities with those of traditional financial institutions. The initiative comes amid a series of recent operational disruptions across the crypto sector.

Lawmakers are reviewing draft legislation that would impose stricter regulations on cryptocurrency exchanges, including mandatory IT security plans, enhanced system and personnel standards, and harsher penalties.

Under the proposed revisions, exchanges could face fines of up to 3 percent of their annual revenue for hacking incidents, aligning them with the standards applied to traditional financial institutions. Currently, the maximum penalty for crypto platforms is limited to 5 billion won, about $3.7 million.

According to data by the Financial Supervisory Service (FSS) that was submitted to lawmakers, five major crypto exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax, have recorded 20 system failures from 2023 through September this year, with Upbit accounting for six incidents, with more than 600 victims reportedly suffering a combined 3 billion won or approximately $2.22 million in losses.

Additionally, some lawmakers from the ruling party have alleged that Upbit delayed disclosing the breach, only reporting it hours later, following the completion of Dunamu’s planned merger with Naver Financial.

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Crypto Exchange Kraken Files for US IPO After $20B Valuation

Michaela — Thu, 20 Nov 2025 09:03:19 +0000

U.S.-based Crypto exchange Kraken has confidentially submitted a draft registration with the U.S. Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO), ending months of industry speculation.

Kraken announced in a Wednesday notice that it confidentially filed a Form S-1 with the SEC for a proposed IPO of its common stock, initiating the review process required for the company to go public.

The filing follows comments from Kraken co-CEO Arjun Sethi, who recently stated the exchange was not rushing to go public, despite 2024 reports indicating plans for an IPO.

Kraken’s IPO filing comes as U.S. crypto exchanges continue to explore public offerings, following Coinbase’s 2021 IPO and Gemini’s 2025 debut. The announcement arrives shortly after Grayscale Investments submitted its own Form S-1, four months after a confidential filing. Less than a day before the filing, Kraken revealed a $20 billion valuation after raising $800 million across two 2025 funding rounds.

In June, reports emerged that OKX is exploring the possibility of a public listing in the United States following its relaunch in the country and amid increasing regulatory pressures across Asia. Since returning to the U.S. market in April, the crypto exchange has reportedly been considering both an initial public offering and a potential listing on a domestic stock exchange.

OKX’s potential U.S. IPO comes as the exchange faces mounting regulatory challenges in Asia. In late May, the Thai Securities and Exchange Commission announced a ban preventing OKX and four other exchanges, Bybit, 1000X, CoinEx, and XT.COM, from operating within Thailand. This regulatory crackdown adds urgency for OKX to pursue new growth avenues and compliance strategies outside of the Asian market.

As the crypto industry continues to evolve, exchanges like Kraken and OKX are navigating a complex landscape of market opportunities, investor expectations, and regulatory oversight. Their moves toward potential public listings in the U.S. signal a broader trend of mainstream financial integration for digital asset platforms.

These developments spotlight the increasing sophistication of the sector, where strategic timing, compliance, and market positioning play crucial roles in shaping long-term growth. The outcomes of these IPO explorations may set precedents for the broader market and influence future capital-raising strategies in the space.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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Kazakhstan Shuts 130 Illegal Crypto Exchanges, Seizes $16.7M in Assets

Michaela — Thu, 09 Oct 2025 12:29:08 +0000

Kazakhstan’s Financial Monitoring Agency (AFM) has shut down 130 unlicensed crypto exchanges and seized $16.7 million in digital assets as part of an ongoing crackdown on money laundering and illicit financial activity.

Key points:

Kazakhstan shut down 130 unlicensed crypto exchanges and seized $16.7M in digital assets to combat money laundering.
Authorities uncovered 81 underground cash-out groups with a combined turnover of 24B KZT (~$51.36M) and highlighted risks from anonymous ATM transactions totaling 13.2T KZT (~$24.4B).
New regulations require ID verification for large card top-ups, extended ATM footage retention, and stricter business registration to prevent shell companies.

Deputy Chairman of the AFM, Kairat Bizhanov, confirmed the closure of the exchanges and the asset seizure during a recent government meeting, according to The Times of Central Asia. In Kazakhstan, only cryptocurrency exchanges licensed by the Astana Financial Services Authority (AFSA) and connected to local banking systems are authorized to operate under the nation’s Law on Digital Assets.

“The activities of 130 unlicensed crypto exchanges involved in laundering criminal proceeds have been terminated this year. Virtual assets worth $16.7 million were seized,” Bizhanov stated.

According to the report, the agency is ramping up efforts against illicit cash-out schemes. Bizhanov revealed that 81 underground groups, with a combined turnover of 24 billion KZT (around $51.36 million), were identified in 2024, emphasizing that automated teller machines (ATMs) continue to pose a significant vulnerability.

Bizhanov noted that cash withdrawals continue to rise despite existing measures, totaling 13.2 trillion KZT (around $24.4 billion), an increase of one trillion KZT from last year. He emphasized the primary risk as anonymous transactions, often conducted using bank cards issued to nominal owners, which obscure the identities of senders and recipients.

The AFM and the National Bank of Kazakhstan have introduced new regulations to curb illicit cash activities. Card top-ups exceeding 500,000 KZT (around $926) now require users to provide their individual identification number (IIN) and confirm transactions via mobile apps. Since January, banks have been mandated to retain ATM camera footage for at least 180 days, with plans to expand biometric verification, including facial and fingerprint recognition, for all cash operations.

The AFM, working alongside the Ministry of Justice and the Ministry of Artificial Intelligence, has drafted amendments to strengthen business registration procedures. The reforms focus on verifying company founders and executives according to risk-based criteria, following a surge in fictitious companies used for money laundering and financial fraud, Bizhanov noted.

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Indian Crypto App CoinSwitch Files Lawsuit Against WazirX: A New Chapter in Crypto Rivalries

Gairika Mitra — Thu, 29 Aug 2024 15:09:10 +0000

Indian cryptocurrency platform CoinSwitch has initiated legal action against rival WazirX. This comes at a time when WazirX is struggling with the aftermath of a $230 million security breach, which happened last month.

CoinSwitch filed the lawsuit on Wednesday leaving the two players grappling over industry practices and competitive positioning.

An X post by CoinSwitch explained that despite its numerous efforts to seek an update on the recovery of the stolen funds, there hasn’t been any solution yet.

“It’s been over a month since WazirX, a major crypto exchange operating in India, claimed that a cyber attack on their platform led to the theft of $230 million (~ Rs 2000 cr) worth of funds.

“We have attempted to be in regular touch with WazirX since the day of the incident but have not been able to reach a solution to recover the funds that are stuck on their platform. Further, their announcement earlier this week is unclear about how a full recovery would happen.

“So we are now taking steps, including legal action, detailed later in this thread to recover the funds stuck on WazirX,” the platform stated.

This legal battle comes in the middle of a crucial juncture for both companies, albeit different in nature in comparison. CoinSwitch has made strides recently on its platform with its latest discoveries, such as a new meme coin listing. WazirX, on the other hand, has been battling a crisis while attempting to retrieve the stolen assets.

Recently, however, WazirX took a major step to address its fallout from the cyberattack that happened last month by filing a moratorium on Wednesday in the Singapore High Court. The move was made under the Insolvency, Restructuring and Dissolution Act 2018. It aims to provide the necessary framework for restructuring the platform’s crypto liabilities through a Scheme of Arrangement.

WazirX users could use the moratorium to develop and implement plans to help manage and restructure its financial obligations. It is also hosting a town hall in the upcoming week to explain the key features of the moratorium.

Binance has acquired WazirX, however it maintained a distance from its dealings and partnerships in 2022.

With the ongoing lawsuit, industry stakeholders and regulators alike are expected to monitor it closely as it reflects the growing pains of a maturing market grappling with legal and ethical challenges.