**South Korea Eyes Stricter Crypto Oversight After Bithumb's $40 Billion Error**

In a shocking revelation, cryptocurrency exchange Bithumb has accidentally given away over $40 billion in bitcoin to its customers, prompting South Korea to consider stricter regulations on digital assets. The incident, which occurred as part of a promotional rewards program, has raised concerns about the need for more stringent oversight and control.

Lee Chanjin, governor of the country's Financial Supervisory Service (FSS), said at a press conference that the incident highlights the importance of legislative measures to regulate digital assets. "There are many areas we are seriously looking into, and we are particularly worried about the issue of electronic systems," Lee stated.

South Korea introduced protections for crypto investors in 2024 with the Virtual Asset User Protection Act, which followed the collapse of TerraUSD and Luna cryptocurrencies in 2022. However, it seems that these regulations may not be sufficient to prevent such incidents in the future.

The government now aims to expand regulatory control over digital assets, as evident from Lee's statement. Bithumb announced on Sunday that it had accidentally given out $40 billion in bitcoin to customers as part of a promotional rewards program. The company claimed that it had since recovered nearly all the coins in question and attributed the incident to an internal error, stating that there were no problems with system security or customer asset management.

Bithumb's statement read: "We would like to make it clear that this incident is unrelated to external hacking or security breaches, and there are no problems with system security or customer asset management." The company went on to say that it had established a Company-Wide Crisis Management System to strengthen its ability to protect customer assets and ensure transaction stability.

Bithumb also announced the establishment of an Investor Damage Relief Task Force to address victims' concerns. Additionally, the company plans to strengthen its asset verification system and implement an artificial intelligence system to detect and block abnormal transactions. Furthermore, it will assess its system with the help of a global security expert.

"Furthermore, Bithumb assumes full responsibility for all losses incurred by customers due to this incident," the statement continued. "While no direct losses to customer assets have been confirmed to date, some trades were executed at unfavorable conditions due to a sharp price drop during the incident period. To protect its customers, Bithumb will provide additional compensation, including full compensation."

The incident has raised questions about the safety and security of cryptocurrency exchanges in South Korea and has sparked calls for stricter regulations on digital assets. As the government continues to review and revise existing laws, it remains to be seen how this incident will impact the crypto landscape in South Korea.