None of South Korea’s major crypto currency exchanges passed the privacy protection test

nRunaway Commentary: South Korea dispatched to the Communications Commission to investigate the 10 major crypto-currency exchanges in South Korea before, as two of them had stopped providing cryptocurrency-related services at the time, so only 8 were actually investigated. However, the results showed that all of the eight exchanges violated the rules governing the protection of personal information, so the committee penalized them and asked them to pay a fine in the hope that such measures would force the exchanges to correct their mistakes. At the same time, the commission also made specific recommendations on user protection for these exchanges.n
nTranslation: Inan
The KCC announced on Wednesday a fine of 141 million won for a total of 8 South Korean cryptocurrencies, as these exchanges violated the Personal Information Protection Act.n
Before making this decision, the agency conducted a survey of 10 cryptocurrencies with the science, technology and information department of KISA. KCC wrote:n
n”Of the 10 companies surveyed, we found that eight companies violated the ICT Law and the other two no longer provided the services we conducted when we conducted the survey.”n
nThe North Korea Daily reported that the 10 exchanges were Upbit, Ripple4y, Coinpia, Youbit, Korbit, Coinone, Coinplug, Eyalabs, Bizcoin and Bizstore. At the time of the investigation, Bizcoin and Bizstore had stopped cryptocurrency-related services and were excluded from the survey list. Bithumb, the largest exchange trading currency in South Korea, has undergone a separate investigation.n

KCC imposed fines ranging from 10 million to 25 million won on each of the eight exchanges. Upbit is one of the largest crypto-currency exchanges in Korea supported by the operator of Kakao Talk, Korea’s most popular chat application. In the meantime, the Youbit exchange is already preparing to file for bankruptcy before the investigation ends.n
Bithumb was fined 60 million won by KCC for disclosure of user data in December.n
KCC Chairman Lee Hyo-Sung said:n
n”We will reduce user losses by imposing tougher penalties on any cryptocurrency exchange that violates the Information and Communication Network Act.”n
nHe elaborated:n
n”While the security threats such as virtual currency speculation and the attacks on related websites are increasing, the actual protection of personal information in the major virtual money exchanges is very weak.”n
nThe commission has ordered all exchanges to cease all irregularities immediately. The exchanges will correct their actions within 30 days and report the results to KCC. The agency also plans to provide guidance and regular education to the top execs in charge of personal information protection.n
KCC wrote: “In order to prevent unauthorized access to personal data, KCC requires the exchange to install and run intrusion protection systems and other access control devices and take steps to prevent tampering of access records and to ensure that personal information is securely stored And transfer. “n
The agency also noted that these exchanges must also “develop and implement internal management plans,” including an “internal management plan on the management of virtual currency e-purse, key and virtual currency transactions.”n

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