The Bank of Korea said in a Monday report that the local cryptocurrency market needs a circuit breaker similar to those used in stock markets, citing Bithumb’s fat-finger incident in February.
On February 6, Bithumb mistakenly transferred 620,000 BTC (worth $43 billion at the time) across hundreds of user wallets as part of a promotional campaign giveaway. The error reportedly stemmed from a staff member inputting the reward unit as BTC instead of KRW (Korean won).
The incident caused the bitcoin-KRW trading pair on the platform to plunge by roughly 15%, resulting in user losses.
The central bank’s latest Payment and Settlement report attributed the incident to a lack of internal controls and regulation within the digital asset market compared to traditional financial institutions.
The BOK also pointed out that Bithumb took 20 minutes to spot the error, and failed to prevent the bitcoin from being moved or sold, widening the losses for users.
“To prevent this from happening at other exchanges, related regulations need to be strengthened,” the BOK wrote.
Exchanges should be required to adopt systems to detect and quickly shoot down such human errors, and market-wide safeguards, such as a circuit breaker that would block abnormally large orders or temporarily halt trading when crypto prices experience sharp fluctuations, the BOK said.
The central bank also called on legislators to consider adopting such measures in the upcoming Digital Asset Basic Act, which is expected to establish a comprehensive set of rules for the local industry.
Meanwhile, Bithumb has recently requested a court to freeze 7 BTC that it failed to recover. Following the incident, Bithumb faced significant scrutiny and investigations from local authorities, and has pushed back its IPO plans to 2028.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
