South Korea’s largest crypto exchange, Upbit, has announced it will increase the proportion of user assets stored in cold wallets (offline) to 99%, reducing the hot wallet proportion to 0%, following the theft of 44.5 billion KRW from its hot wallet by hackers. The wallet system adjustment has been completed, exceeding South Korea’s regulatory requirement of 80% cold storage. https://t.co/gwNHEYnYur ...

Regulatory Enforcement - South Korea's National Tax Service is escalating enforcement actions, targeting cold wallets through home searches and hard drive confiscation [1] - The National Tax Service collected $108 million from 14,000 tax evaders over four years [1] - Suspicious transaction reports shattered records in 2025, indicating increased scrutiny [1] Market Dynamics - South Korea's investor base has surged to 11 million, an 800% increase since 2020 [1] - Daily trading volumes in South Korea reach $4.7 billion [1]