South Korea is set to introduce a groundbreaking no-fault compensation law for cryptocurrency exchanges, mandating full reimbursement for users affected by hacks or system failures. The Financial Services Commission's proposal aims to align crypto exchange liability with that of banks and electronic payment firms, ensuring victims are compensated unless they exhibit gross negligence. This legislative move comes in response to a series of IT incidents, including a significant breach at Upbit on November 27, which resulted in the rapid loss of Solana-based assets. From 2023 to September 2025, the country's top five exchanges reported 20 IT incidents impacting over 900 users.