South Korean Government Agencies Investigate Top 13 Cryptocurrency Exchanges
Not long ago, a South Korean exchange known by the name of Youbit was hacked, and put into bankruptcy, after roughly 17% of its total assets were stolen. This aspect has led the South Korean Fair Trade Commission, also known as the FTC, to begin investigating digital currency exchanges operating within the country, in order to see whether any consumer laws are being violated.
According to recent reports, the FTC alongside a couple of other South Korean government agencies, have begun conducting investigations on-site for 13 of the biggest digital currency exchanges in the country. Some of the agencies involved in this investigation include the Department of Finance Policy, the VAT Tax Department, the Ministry of Science, the central bank and a few more.
In a joint press release, it was mentioned that: “Based on the contents of the investigation, the FTC will take action in accordance with relevant laws and regulations.”
Apart from this aspect, it seems like stricter regulations are also slowly being put into place, in order to avoid future hacks, and to better manage possible money laundering risks. Based on this, the Ministry of Science and Technology also announced that a few exchanges, including Korbit, Coinone, Bithump and Upbit will be required to receive the Information Security Management System Certification for the year of 2018. Apart from this aspect, these exchanges have also been urged by the FTC to further improve their security. It is important to point out the fact that this particular certification is required for companies which have sales that exceed 10 billion won, and have over 1 million daily visitors. The other exchanges which do not need this certification just yet, are in fact subject to the Personal Information Management System, which is an autonomous certification system which can evaluate how a company collects, uses and destroys personal information of its users, for added security.
The press release also mentioned that: “The Financial Supervisory Commission and the Financial Supervisory Service are planning to inspect and take measures to ensure that the user confirmation system runs smoothly during January-June of 2018.”
Based on everything that has been outlined so far, South Korea remains one of the world’s regions with the highest trading volumes and general interest in digital currency, yet stricter regulation is being put into place, to help protect customers and avoid other possible issues.