Korea Communications Commission to impose fines on eight crypto currency exchanges

nBankruptcy Commentary: While South Korea’s financial regulators have announced and implemented regulatory measures on the local cryptocurrency exchange, KCC, which is responsible for broadcasting, telecommunications and citizen data protection, also conducted a survey of these transaction processing platforms, Found that eight exchanges violated relevant laws and regulations in protecting user privacy and decided to impose a total fine of 141 million won on them. They hoped to further urge these companies to correct their misconduct and provide them with better guidance.n
nTranslation: Inan
On January 24, the South Korean government announced a fine of 141 million won ($ 130,000) to the local cryptocurrency exchange as these exchanges did not provide sufficient user data protection.n
The KCC said in a statement that the punishment was the result of a survey conducted by the agency on 10 cryptocurrencies in South Korea from October 10 to December 28, 2017. KCC oversees the information protection of broadcasting and telecommunications departments and citizens.n
Eight of the 10 companies surveyed were found to have violated South Korea’s “Information and Communication Network Act,” which requires such entities to adopt user privacy protections.n
The eight companies that were fined are Upbit, Ripple4y, Coinpia, Youbit, Korbit, Coinone and Coinplug, and cryptocurrency wallet service Eyalabs. According to the agency, the penalty for each company varies from 9,000 to 14,000 U.S. dollars.n
The announcement states in detail that serious violations include the fact that some exchanges still do not delete users’ data more than a year after users stop using their services, while other exchanges store user data abroad.n
KCC Chairman Lee Hyo-Sung said:n
n”While virtual currency speculation and the threat posed by attacks on related websites are increasing, the actual protection of personal information in major virtual currency exchanges is very weak, so we will work harder to reduce user losses through stricter sanctions.”n
nKCC then asked the exchanges to take action within 30 days to resolve the issue and submit a report to it. In addition, the regulator said it will develop and implement plans for managing cryptocurrencies wallet, private key and cryptocurrency transactions as administrative guidance for the transaction.n
Although the amount of fine may not be much, but the move is still worth noting. Just days before the agency announced the decision, South Korea’s financial regulator has just announced the date of the official cessation of the anonymity of cryptocurrencies, a heralding of South Korean authorities’ efforts to strengthen regulation of cryptocurrencies.n

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