Report: Only 7 Crypto Exchanges Make It Through South Korea’s Security Police

Governments all around the world seem to be on their feet when it comes to anything blockchain or crypto related. While several countries are calling for regulations on blockchain related projects, others are weighing in on the consequences of launching national cryptocurrencies. South Korea, on the other hand is on a rigorous drive to scrutinize and audit the cryptocurrency exchanges operating in the country.

According to a report published on the 10th of January, by the local tech news outlet, ZDNet, some of South Koreas biggest cryptocurrency exchanges have managed to survive and pass the government security audit. However, the report did mention that the majority of the exchanges are still vulnerable and could be exposed to attacks, safe to assume that those exchanges didn’t make it through the scrutiny.

Apparently only seven of the exchanges running in the country managed to pull through and satisfy the investigators during the audit, while 14 failed to meet the criteria for suitable security procedures. Bithumb, Coinone and Corbit, are three of the exchanges that came out clear from the audit, which took place between September and December of last year.

South Korea was known for its rather vibrant crypto market, and it was also one of the world’s most active cryptocurrency trading economies, that is before the regulatory disruption caused a dramatic change in consumer habits back in 2017.

Attackers have also targeting the country’s operators continuously, in order to steal funds from the users. Even the most secured crypto exchanges like Bithumb were successfully targeted, as it reported breaches worth tens of millions of dollars, only last year.

The ZDNet report further revealed that in the recent audit, the lawmakers had the authorities look into 85 different aspects of security. And it turns out that that amongst 85 requirements, an average of 51 aspects were in need to dire attention.

It was only last month that a court acquitted the famous Bithumb, in a case brought by one investor who claimed he lost funds worth $355,000 in a hack because of the platform.

We are curious to see if South Korea can reclaim its lost glory of the crypto market in 2019. For further updates, stay tuned to BlockPublisher.

Abeer Anwaar

Abeer holds a Bachelors degree in Media studies and covers blockchain startups for BlockPublisher. An optimist, excels in the art of the written word and swears by the joy of all things sweet. Contact the editor at editor.startups@blockpublisher.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.