Crypto exchanges that suffer security breaches could face fines amounting to up to 10% of the value of stolen digital assets under emerging regulatory proposals. The move aims to push platforms to strengthen cybersecurity standards, improve risk management, and ensure faster reporting of hacks. Regulators argue that financial penalties will encourage exchanges to invest more in safeguards and protect users. The proposal reflects growing scrutiny of crypto platforms as hacking incidents and investor losses continue to rise globally.