Baek Sun-hee Proposes Bill Requiring Real-Time Crypto Balance Reconciliation

Baek Sun-hee, a lawmaker from the Rebuilding Korea Party, said she introduced a bill on June 4 that would require virtual asset operators to keep their actual holdings aligned in real time with internal ledger balances and codify internal control standards.

Current law requires the separate custody of customer deposits and virtual assets, insurance coverage and monitoring of abnormal transactions. But it does not clearly require real-time reconciliation between actual balances and internal ledgers or set explicit standards for operators' internal controls.

Baek's amendment would require virtual asset service providers to build and operate information-processing systems that synchronize the actual balances of entrusted assets with balances recorded on internal ledgers in real time. It would also mandate functions that automatically restrict or suspend transactions when anomalies such as balance mismatches or unusually large transfers are detected.

The bill would also significantly strengthen internal controls. It would require virtual asset service providers to establish internal control standards and appoint compliance officers. It would also add a provision making operators, in principle, liable for damages suffered by users when losses result from the operator's negligence, including computer outages or system errors.

"This incident was not a simple computer error," Baek said. "It showed that the crypto market's internal control and asset verification systems have not been sufficiently institutionalized."

"The crypto market now needs internal controls and user protection systems on par with traditional finance," she added. "I will work to establish an institutional framework that prevents such incidents before they happen, rather than merely responding afterward."