South Korea's Financial Services Commission (FSC) has proposed a new bill that would impose fines of up to 10% of stolen funds on cryptocurrency exchanges that fall victim to hacking. This proposal follows a $36 million hacking incident at Upbit in November 2025. Under the proposed regulation, the fine for such an incident would have been $3.6 million, a significant increase from the current maximum fine of $456,000. The FSC's draft also suggests fines of 3% of an exchange's annual revenue, with penalties potentially reaching $36 million. The proposed legislation aims to ensure that crypto trading platforms adhere to IT security standards similar to those of traditional financial institutions. The regulatory direction is still under discussion.