South Korea's Financial Services Commission (FSC) is proposing new regulations that would impose fines of up to 10% of revenue on cryptocurrency exchanges that experience security breaches. This move, reported by MTN News, marks one of the most stringent approaches to crypto exchange accountability globally, potentially influencing regulatory standards in other countries. The proposed framework would hold exchanges strictly liable for customer losses due to hacking incidents, regardless of the preventive measures taken. This has sparked criticism from the crypto industry, which argues that the penalties are excessive compared to those for traditional financial institutions, potentially stifling innovation and competition. South Korea's proposal comes amid a backdrop of high-profile exchange hacks and aims to enhance consumer protection in one of the world's most active crypto markets. The final regulatory framework is expected to be finalized later in 2025, with significant implications for the global digital asset ecosystem.