This week, the South Korean financial regulator pushed for stricter crypto oversight, citing flaws in the electronic systems for virtual assets that led to the Bithumb exchange accidentally giving away $44B in bitcoin, most of which was quickly recovered. Meanwhile, the ex-head of the US House Financial Services Committee hopes the CLARITY Act will pass soon and stabilize the crypto sector. Lastly, the South African Reserve Bank Governor warned that stablecoins could threaten the country’s financial stability.
To learn more, read on.
South Korean regulator responds firmly to Bithumb’s accidental $44B bitcoin giveaway
South Korea’s local exchange Bithumb accidentally gave away $44B in bitcoin to customers in a promotion held on February 6, 2026, that offered an initial $1.37 deposit into their bank accounts. The error triggered a sharp selloff on the exchange before Bithumb was able to suspend the transactions.
The Financial Supervisory Service’s (FSS) Governor Lee Chan-jin responded swiftly. At a press conference held on the following Monday, he said: “This case shows the structural problems of electronic systems for virtual assets.” He added that the incident highlighted the need to “significantly improve the regulatory system, as virtual assets are in the process of being brought into the legacy financial system.”
Reflecting on media speculation that the amounts of Bithumb’s accidental giveaway totaled more bitcoin than the exchange had, he said that so-called ‘ghost coins’ would have to be addressed before crypto could be fully recognized as legacy financial assets.
Meanwhile, of the 620,000 bitcoins given away, 99.7% were recovered, and of the 1,786 bitcoins sold before the transaction suspension, 93% were recovered. Customers who sold their surprise bitcoins are legally obliged to return the money.
South Korea’s Virtual Asset User Protection Act was introduced in July 2024 to protect crypto investors following the collapse of the Terra USD and Luna cryptocurrencies. Another bill is expected to expand regulatory oversight of digital assets, while the role of won-denominated stablecoin will also be considered.
Why this matters: While South Korea aims to integrate virtual assets into its traditional market system, the incident underscores the broad range of potential consequences stemming from human and technological error. Compliance professionals will need to monitor operational and custody risks at crypto exchanges even more carefully.
Read more on Reuters.
Former House Financial Services Chair predicts CLARITY Act could pass by May 2026
The former House Financial Services Committee Chairman Patrick McHenry projects that the landmark U.S. Digital Asset Market Clarity (CLARITY) Act of 2025 could become law by May 2026, ending regulatory uncertainty. He said it has been prioritized by President Trump following the successful passage of the stablecoin regulation GENIUS Act.
The CLARITY Act will resolve regulatory jurisdictional oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) by defining which crypto assets constitute commodities and which securities. It also addresses the regulation of stablecoins, particularly whether to prohibit or permit interest payments, ensures the integration of Decentralized Finance (DeFi) into the sector, and establishes clear ethical rules and standards for public officials in the crypto sphere.
Politicians must now find a middle ground between the Democrats’ desire for stronger ethical and consumer protections and the Republicans’ alignment with Trump’s position on greater innovation. The Act should provide legal clarity to unlock significant capital inflows and bring the USA in line with the European Union, which has already implemented its Markets in Crypto-Assets (MiCA) regulations.
Why this matters: Federal crypto legislation and clear boundaries between regulatory agencies would transform the compliance landscape. Investigators and law enforcement will be able to pursue crypto crimes across consistent legal frameworks, and regulators will gain statutory authority to oversee digital asset markets and protect consumers.
Read more on Cryptorank.
South African Reserve Bank Governor warns that stablecoins could “break apart”
The South African Reserve Bank (SARB) Governor Lesetja Kganyago warned that stablecoins pose significant financial stability risks despite their asset backing. Speaking on February 7 at the 2026 Warwick Economics Summit, Kganyago stressed central banks’ responsibility to “protect the oneness of money and the affordability of money to the public.” He added that “The truth of the matter is that these things [stablecoins] could break apart.”
The use of stablecoins is gaining momentum in South Africa, where it’s seen as a less volatile form of crypto, despite the SARB’s concern that the lack of comprehensive stablecoin regulations is a risk to the country’s financial sector. Increased global uncertainty, the imposition of US Tariffs on the country, and other changes in the past year have underlined the importance of the various financial models used by South Africa’s central bank.
Meanwhile, the European Central Bank (ECB) Vice-President Christine Lagarde indicated on February 5, 2026, that the ECB could soon consider repo lines (lending arrangements) for non-European central banks, which Kganyago believes is a potentially welcome development for South Africa.
Why this matters: SARB’s warning at the Summit signals potential regulatory tightening that compliance professionals should consider when advising clients on stablecoin purchases. Meanwhile, stablecoins’ ability to bypass exchange controls poses capital flight risks that require enhanced monitoring.
Read more on Moneyweb.
