South Korea's Financial Services Commission (FSC) has mandated that local cryptocurrency exchanges implement a system to reconcile internal ledgers with actual crypto asset holdings every five minutes by the end of May. This move aims to enhance transparency and security within the crypto market. Exchanges will also be required to publicly disclose daily asset reconciliation balances and undergo monthly external audits by accounting firms. Currently, three of the five major exchanges in South Korea perform asset reconciliations on a 24-hour cycle, while the remaining two operate at intervals between five and ten minutes. The FSC's directive comes after regulators identified shortcomings in the exchanges' trading halt mechanisms when significant asset mismatches occur.