Bank of Korea Proposes Crypto Circuit Breakers Following Bithumb Operational Error

South Korean exchange Bithumb has escalated its legal battle by seeking formal asset freezes against users who refused to return 7 BTC following a massive operational blunder on February 6 involving 620,000 BTC. This unprecedented error prompted the Bank of Korea (BOK) to propose stock-style "circuit breakers" to mitigate market volatility caused by technical failures. Meanwhile, a Seoul court has overturned the business suspension imposed on Dunamu, the operator of Upbit, citing significant regulatory gaps as the basis for the cancellation. This court decision effectively closes a legal battle spanning more than a year after Dunamu moved to overturn the sanction and halt its enforcement. The central bank continues to urge lawmakers to enforce stricter internal controls to safeguard financial stability against such high-stakes technical and regulatory challenges.