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flag South Korea demands stricter crypto rules after Bithumb’s $40B bitcoin glitch exposed market flaws.

flag South Korea’s financial regulator has called for stronger crypto regulations after Bithumb accidentally issued over $40 billion in bitcoins due to a technical error, exposing systemic vulnerabilities in digital asset markets. flag The incident, which created 620,000 "ghost bitcoins," prompted the Financial Supervisory Service to accelerate enforcement actions, including AI-powered surveillance, stricter exchange oversight, and new rules on disclosures, licensing, and cybersecurity. flag The agency is also developing powers to freeze accounts involved in fraud or manipulation, following a recent court conviction of a Bithumb executive. flag These moves aim to protect investors, prevent market distortions, and ensure stability as South Korea strengthens its regulatory framework for digital assets.

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