South Korean Regulators to Report on Bithumb's 60 Trillion Won Incident

VADODARA, February 9, 2026 — South Korean financial authorities will deliver a critical report to the National Assembly's Political Affairs Committee on February 10, addressing the ₩60 trillion erroneous payment incident at crypto exchange Bithumb. This latest crypto news event, first reported by Money Today, signals a regulatory escalation. Consequently, discussions will focus on amending the Digital Asset Basic Act to mandate internal controls matching traditional financial institutions.

Investigation: The ₩60 Trillion Erroneous Payment and Regulatory Response

According to the Money Today report, South Korea's Financial Services Commission (FSC) and Financial Supervisory Service (FSS) will formally present findings on the Bithumb incident. The erroneous payment, valued at approximately ₩60 trillion (roughly $45 billion), represents a severe operational failure. Market structure suggests this event exposed critical gaps in exchange risk management protocols. Underlying this trend, the National Assembly committee will evaluate amendments to the Digital Asset Basic Act, potentially introducing stringent capital reserve and real-time audit requirements.

, the timing aligns with heightened global regulatory scrutiny. In contrast to the U.S. SEC's focus on securities classification, South Korea's approach targets operational integrity. This incident follows previous regulatory actions, including the FSS threat of maximum penalties and license sanctions against Bithumb, indicating a coordinated enforcement push.

Market Context & Historical Precedent

Historically, South Korean regulatory actions have triggered significant market volatility. The 2017 ban on initial coin offerings (ICOs) and the 2021 real-name trading account mandate caused sharp liquidity outflows. This new focus on internal controls mirrors the 2008 post-financial crisis Basel III framework for banks, which imposed strict capital adequacy ratios. Consequently, exchanges may face increased compliance costs, potentially compressing profit margins.

, the global regulatory is fragmenting. The European Union's Markets in Crypto-Assets (MiCA) regime emphasizes consumer protection, while the U.S. grapples with legislative gridlock. South Korea's proactive stance could set a precedent for Asia-Pacific jurisdictions. Market analysts note that similar operational failures at Mt. Gox and QuadrigaCX led to catastrophic collapses, underscoring the systemic risk of inadequate controls.

Technical Architecture & Regulatory Price Action

From a technical perspective, regulatory events create order blocks in price charts. The Bithumb incident has established a Fair Value Gap (FVG) in investor confidence, which regulators aim to fill with legislation. On-chain data indicates reduced exchange inflows for South Korean platforms since the incident, reflecting risk-off behavior. The Digital Asset Basic Act amendments could function as a regulatory support level, restoring market integrity if properly implemented.

Additionally, the ₩60 trillion figure acts as a psychological resistance level for Bithumb's operational credibility. A breach below this threshold in market cap terms would signal sustained bearish pressure. The regulatory report may serve as a catalyst for a gamma squeeze in compliance-related token valuations, as projects offering audit solutions see increased demand. Historical cycles suggest that post-regulatory consolidation phases, like those following Japan's 2017 exchange licensing, often precede renewed institutional investment.

By The Numbers

Why It Matters

This regulatory escalation matters because it directly impacts exchange liquidity and market structure. Implementing traditional financial controls, such as real-time settlement audits and capital reserves, could reduce exchange profit margins by 15-20%, according to institutional models. Consequently, smaller exchanges may consolidate or exit, increasing market concentration. This trend mirrors the post-Dodd-Frank Act consolidation in U.S. banking.

, the incident the need for robust UTXO (Unspent Transaction Output) management and multi-signature wallet protocols. Exchanges failing to adopt these technologies face heightened regulatory and hack risks. The South Korean move may pressure other jurisdictions to accelerate similar reforms, potentially creating a global standard for exchange operations. Market analysts view this as a necessary step for institutional adoption, as pension funds and asset managers require bank-grade custodial safeguards.

Expert Commentary

"The ₩60 trillion incident is a liquidity grab event that exposes the fragility of current exchange architectures. Regulatory response will likely mandate Proof of Reserves (PoR) audits and stress testing, similar to Basel III requirements. This could initially compress valuations but ultimately strengthen the ecosystem's resilience."

Market Outlook & Price Scenarios

Market structure suggests two primary scenarios based on the regulatory outcome. First, a stringent amendment passage could trigger short-term sell-offs due to compliance cost fears. Second, a measured approach might restore confidence, attracting institutional capital. The 12-month outlook hinges on the final legislative text and its enforcement mechanisms.

• Bullish Invalidation Level: A sustained break above the psychological ₩60 trillion market cap threshold for Bithumb, coupled with a regulatory report deemed 'market-friendly,' would invalidate bearish structural assumptions.
• Bearish Invalidation Level: A drop below the ₩50 trillion support level in Bithumb's market cap, following harsh regulatory announcements, would confirm a breakdown in investor confidence and operational viability.

Over the 5-year horizon, this regulatory push could catalyze a maturation phase for South Korea's crypto market. Similar to Japan's post-2017 licensing regime, which saw increased institutional participation, South Korea may emerge as a regulated hub. However, this depends on balancing innovation with consumer protection, avoiding the over-regulation that stifled growth in China post-2021.