South Korea's Financial Services Commission (FSC) has proposed a draft bill to impose fines on hacked cryptocurrency exchanges, amounting to up to 10% of their losses. This move follows a significant breach at Upbit, a leading domestic exchange, which lost $36 million in November last year. Under the proposed legislation, Upbit would have faced a fine of $3.6 million, significantly higher than the current maximum fine of $456,000. The FSC's proposal aims to tighten cybersecurity and liability standards for crypto exchanges, aligning them with those of traditional financial institutions. However, this draft may conflict with another proposal under consideration, which suggests fining hacked exchanges up to 3% of their annual revenue. For Upbit, this could mean a fine of $36 million, based on its 2024 revenue of $1.2 billion. The proposal comes amid a backdrop of 20 security incidents at major exchanges, including Upbit and Bithumb, from January 2023 to September 2025.