Exchange Reviews

Only 7 out of 38 Korean cryptocurrency platforms have passed the security test

Regulators in South Korea have not relented in their push for secure Korean cryptocurrency platforms. To ensure that the exchanges are always at par when it comes to security, the Korean cryptocurrency platforms undergo routine cryptocurrency checks. With approximately 2 billion U.S dollars being held by these exchanges, it is of apt importance to ensure investors have a security guarantee.

The South Korean regulators which include the finance ministry and the Korea Internet and Security Agency (KISA) released a report which showed how best or worst cryptocurrency exchanges can handle attacks. The regulators had scrutinized 38 exchanges.

Out of the 38 Korean cryptocurrency platforms, only 7 were given a clean security certificate after having passed all the 85 security checks.

The regulators targeted the new crypto platforms and also checked on those that had been investigated earlier and given letters of improvement.

The report found that 17 Korean cryptocurrency platforms did not have crucial security related systems in place. This included, among other things, a lack of a password management system, cryptocurrency storage monitoring systems, personnel that are only concerned with security, and a way to control withdrawals and deposits.

The 7 that satisfied the regulators are Korbit, Hanbitco, Huobi Korea, Gopax, Upbit, Bithumb, and Coinone. The seven had received improvement orders during a previous audit.

Korean cryptocurrency platforms are regulated by the country’s science ministry instead of the financial watchdogs. This is in part because the country considers crypto platforms as information providers.

However, the country’s Financial Supervisory Service has hinted at plans of including crypto exchanges under its jurisdiction.

The security investigations were conducted between October and December last year.

Do you think the security clearance of the 7 South Korean crypto platforms will net them more customers?

Let us know your thoughts in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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