8 South Korean Exchanges Fined For Low …

8 South Korean exchanges fined for low security standards

Eight major South Korean exchanges, including Korbit, Coinone, Upbit, Coinplug, RippleForYou and Coinpia, have been fined between $ 10,000 and $ 25,000 for a total of $ 130,000 for lax security measures. Writes about this CCN with reference to local sources.

As explained in the South Korean Communications Commission (KCSC), they all violated the requirements of the Information and Communication Networks Law and the Law on Non-Dissemination of Confidential Information..

A thorough audit of cryptocurrency exchanges was carried out by the Communications Commission, the Ministry of Science, Technology and Information and the Internet Development Agency from October 10 to December 28, 2017. As a result, it was found that 8 out of 10 exchanges used weak protection measures, which is a violation of the law.

“While daily trading volumes and user numbers continue to skyrocket, local trading platforms use extremely weak security measures. Basic solutions, such as devices for restricting access, storing user passwords and protecting users, do not work well, ”the department said..

Coinone and Yapian were jointly fined $ 50,000 for unsafe storage of user passwords and personal data. KCSC explains that these two exchanges have not isolated accounts that have not been used for over a year..

8 South Korean Exchanges Fined For Low ...

Korbit, the country’s third-largest exchange, was fined $ 20,000 for not having reliable tools to detect hacker attacks and protect servers. Upbit, which recently became the largest exchange in South Korea, received a $ 20,000 fine for violating the non-distribution of confidential information law.

KCSC notes that the exchanges got off with minor fines, since violations on their sites were detected for the first time. They now have 30 days to fix bugs.

Although South Korea’s largest exchange, Bithumb, was not listed as offending this time in the past, the Communications Commission imposed a $ 55,000 fine on it back in December. The Bithumb breach turned out to be more serious as it was related to “alleged leakage of user personal data”.

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