Asian crypto exchanges tighten security as AI-linked hacks rise
Exchanges in Asia are tightening security amid a rise in AI-linked attacks
Asian crypto exchanges, meaning platforms where people buy and sell digital assets, are tightening security after a series of high-value hacks. India has warned of an active AI-assisted threat, and South Korea has urged exchanges to keep more assets in cold wallets.
A cold wallet is a wallet kept offline and not connected to the internet, which makes it harder for hackers to reach. South Korea already requires exchanges to keep at least 80% of customer assets in cold storage.
The period has also included regulatory moves in Hong Kong, Thailand, Japan and other countries, alongside a denial from North Korea in connection with the $6.3 billion Binance hack reported in the source.
Key numbers from the reports
- India's CERT-In named the threat actor “CRAFTY FALCON” and said the threat is active and ongoing.
- South Korea's law requires at least 80% of users' crypto assets to be held in cold storage.
- Upbit reported 99.17% in cold wallets, Bithumb 94.76% and Coinone 85%.
- The Bank of Korea is surveying 31 financial institutions about crypto-related risks.
- Crypto.com plans to end its Hong Kong consumer app services on 1 February 2027.
- Thailand plans to block access to Bitget from 5 December.
What India's CERT-In warning says
India's national cybersecurity agency, the Indian Computer Emergency Response Team (CERT-In), said an AI-assisted actor has increased attacks on crypto exchanges and other financial businesses, including stealing wallet keys and moving funds.
CERT-In said it continues to receive reports of successful attacks, including from firms that had received earlier restricted advisories and had carried out remediation, such as non-bank financial firms and fintech companies.
Cybersecurity firm CrowdStrike separately reported in October that an unidentified attacker used ARTEX, an AI penetration-testing tool also named in CERT-In's advisory, together with Claude Code and other AI models, to breach South Korean financial firms and steal data. That finding was reported by CrowdStrike, not confirmed by CERT-In in the supplied material.
South Korea urges more cold storage after the Binance hack
South Korea's Financial Services Commission (FSC) has urged domestic exchanges to increase the share of assets in cold wallets after the $6.3 billion attack on Binance.
The FSC said it held an emergency meeting with other regulators, cybersecurity agencies and crypto service providers. It reviewed IT access controls, wallet withdrawal approval and signing procedures, and administrator privileges.
It also urged providers to increase offline cold-wallet holdings. The figures reported for Upbit, Bithumb and Coinone are all above the 80% legal minimum.
Bank of Korea checks how a crypto shock could spread
The Bank of Korea is surveying 31 financial institutions on how a major exchange shutdown, a prolonged crypto downturn, or losses at another firm could affect their operations.
One scenario asks how firms would be affected if South Korea's largest crypto exchange by market share temporarily suspended operations after a major hack or similar incident.
Other questions cover a steep fall in crypto prices followed by a sustained trading slump, and the fallout if another financial institution suffered heavy losses from a crypto-related incident.
North Korea denies a role in the Binance hack
North Korea denied involvement in the $6.3 billion Binance hack, according to a statement attributed to Kim Yo Jong. The statement said the US claim that a hacking organisation supported by North Korea was involved was “absurd rhetoric.”
The denial is a claim by Pyongyang. The supplied material does not provide independent confirmation of who carried out the attack.
Hong Kong, Thailand and other regional moves
Crypto.com said it will discontinue consumer app services in Hong Kong on 1 February 2027. It said affected customers received advance notice and would receive instructions on closing accounts and withdrawing funds. It will continue to seek approval for its institutional exchange. Its local entity's licence application, submitted nearly three years ago, remains in a “deemed-to-be-licensed” transitional status, not full approval.
Animoca Brands secured approval through subsidiary Animoca Asset Management (AD) Limited from Abu Dhabi Global Market's Financial Services Regulatory Authority to manage funds for non-retail, professional clients in Abu Dhabi.
Hong Kong expanded its Project Ensemble pilot to allow round-the-clock settlement of tokenized transactions. Tokenization means representing assets on a blockchain, a shared digital ledger. Hong Kong also opened secondary trading for SFC-authorised tokenized funds through licensed exchanges, with two China Asset Management money-market funds trading via PantherTrade and the Futubull app. A stablecoin, a token designed to keep a steady price, is planned for trials involving tokenized government debt.
Thailand's securities regulator filed a criminal complaint against BG Limited, operator of Bitget, for allegedly operating without a licence. The regulator said Bitget offered trading services from 2022 to 2025, charged fees, and promoted services in Thai. Access to its website and app will be blocked from 5 December, and users were advised to act on assets before that date.
Other items reported include Vietnam requiring licensed exchanges to report security incidents and remediation plans within 24 hours; five banks in Singapore launching the Global Layer One Organization to promote tokenization standards; South Korea's government backing a delay of its crypto gains tax to 2029; and Japanese yen stablecoin JPYC reaching about 3 billion yen in circulating supply, below its internal target.
Australia's central bank raised its interest rate by 25 basis points to 4.85%, pushing its forecast for inflation to return to its 2% to 3% target range until late 2027. The source also reported debate in Australia over capital gains tax changes affecting crypto holders.
What is confirmed and what remains disputed
Confirmed in the supplied material are the CERT-In warning and threat name, the FSC emergency meeting and cold-storage request, the existing 80% cold-storage rule and the reported percentages for three exchanges, and the Bank of Korea survey of 31 institutions.
Reported by CrowdStrike are the claims about ARTEX and other AI models being used against South Korean financial firms. This has not been confirmed in the supplied material by another source.
The main point of dispute is responsibility for the Binance hack. North Korea has denied involvement. The supplied material contains no independent finding on responsibility.
Dates to watch next
Thailand is set to block Bitget access from 5 December. Crypto.com's Hong Kong consumer app services are set to end on 1 February 2027. South Korea's planned start for its crypto gains tax has been pushed to 2029, according to the source.
Links to the original reports
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.