South Korea's Financial Services Commission is advancing a second phase of virtual asset legislation following a recent hack at Upbit, which resulted in a loss of approximately 40 billion won. The proposed legislation aims to impose strict liability on crypto exchanges for damages from hacks or system failures, aligning them with financial institutions. The new rules are expected to enhance security obligations and IT compliance requirements. Additionally, the legislation may increase fines for hacks to 3% of revenue, significantly higher than the current maximum of 500 million won.