South Korea's Financial Services Commission is considering legislation that would impose 'no-fault liability' on virtual asset operators for damages from hacker attacks, according to Yonhap News Agency. This proposal, part of the draft "Second Phase of Virtual Asset Legislation," would hold operators accountable for damages even if they are not at fault, aligning them with financial companies' responsibilities. The move follows 20 computer system incidents reported by major South Korean exchanges from 2023 to September 2025. Additionally, the South Korean National Assembly is reviewing an amendment to the Electronic Financial Transactions Act that could increase fines for hacking incidents to 3% of a company's sales revenue. If passed, this would significantly raise the financial penalties for virtual asset operators, which currently face a maximum fine of 5 billion won.