South Korea’s digital currency market may receive renewed support after a period of weak activity. Bitwise researcher Jeff Park links the potential recovery to the behavior of retail investors, who currently keep most of their capital in shares of the country’s largest companies.

The decentralized exchange Drift Protocol presented a detailed recovery plan for users following the massive April 1, 2026 hack, during which approximately $295 million was lost. According to cybersecurity firm Mandiant, the attack was organized by cybercriminals linked to North Korea.

South Korea is urging cryptocurrency exchanges to implement automatic trading curbs and stricter security measures after failures in internal controls exposed vulnerabilities capable of triggering sharp market disruptions. The Bank of Korea (BOK) warned that existing systems fall short of traditional financial standards.

Financial regulators in South Korea are preparing new rules that will allow public companies to invest in cryptocurrencies, although dollar-pegged stablecoins may be excluded from the list of permitted assets. This concerns $USDT and $USDC, which are widely used in international settlements.