Korean Authorities to Probe Crypto Exchanges’ Handling of Personal Data

Published at: July 2, 2018

Two Korean watchdogs have announced a joint probe into crypto exchange operators’ handling of personal data, local news outlet Chosun reports Monday, July 2. The agencies in question are the Korea Communications Commission (KCC) and the Korea Internet & Security Agency (KISA).

The KCC and KISA will investigate potential infringements of data privacy rights by crypto exchange operators in conjunction with third party service providers - for example, smartphone apps designed for services such as real estate, shopping and travel.

The probe will reportedly check the status of technical and administrative protection measures related to users’ personal data - covering data access control measures, anti-tampering measures, personal data encryption, and malware protection.

After reviewing the collection, use, provision and destruction of personal data by both crypto exchange operators and third parties, the authorities have said they will enforce administrative penalties should they discover violations of the country’s data protection laws.

Chosun reports further that the KCC will probe eight crypto money handling firms who have received corrective orders after violating Korea’s Personal Information Protection Act in 2017.

Chosun cites a local source who says that recent hacks of domestic crypto exchanges have been a strong impetus for the new probe.

These include last month’s high-profile $17 million hack of major Korean exchange Bithumb, whose causes KISA has been investigating in partnership with other agencies. Notably, just prior to the incident, Bithumb had been given the all-clear following a three month long investigation into its operations by South Korean authorities.

Throughout spring, Korean exchanges have faced increasing scrutiny from regulators for their compliance with anti money laundering (AML) standards and other fraud prevention measures.

Just this week, Korea’s Financial Services Commission (FSC) released a set of revised AML guidelines for virtual currencies.

Tags
Altcoin
Cryptocurrency Exchange
South Korea
Related Posts
Why this platform could be a game-changer as crypto booms in South Korea
The crypto markets in South Korea have long stood out from the rest of the world, and a lot of this has to do with the “Kimchi premium,” which often causes Bitcoin (BTC) to trade on local exchanges at much higher prices than what’s seen elsewhere. Now, one cutting-edge platform is aiming to capitalize on the fervent interest for digital assets in the country, with an ambitious expansion of its services that sit at the crossroads between cryptocurrencies and gaming. GamerHash says it has already amassed more than 570,000 users in three years and is now planning to make inroads …
Blockchain / April 16, 2021
Crypto Exchange Upbit Finishes Security Update in Response to 2019 Hack
Strengthening its walls after a hack in late 2019, South Korean crypto exchange Upbit has finished a security upgrade for the wallets on its exchange platform, restoring functionality once again. Upbit decided to update its defenses in response to an Ethereum (ETH) hack the exchange suffered in 2019, an Upbit representative confirmed to Cointelegraph in an email on Jan. 14, 2020, adding: “It is part of our effort to increase Upbit’s overall security since the Ethereum theft incident last November. Immediately following the incident, we suspended deposit/withdrawal services and transferred all crypto-assets to cold wallets. Since then, we’ve been revamping …
Ethereum / Jan. 15, 2020
Coinbase Expands Crypto-to-Crypto Services to 11 More Countries
Major American cryptocurrency exchange and wallet provider Coinbase has expanded its crypto-to-crypto trading to more countries, according to a blog post published on April 17. Coinbase and its professional trading platform Coinbase Pro have introduced crypto-to-crypto conversions and trading to 11 more countries in Latin America and Southeast Asia. The product is now also available to Argentina, Mexico, Peru, Colombia, Chile, India, Hong Kong, South Korea, Indonesia, the Philippines and New Zealand. Coinbase customers in the aforementioned countries can now store, trade, send, and receive cryptocurrencies. The exchange suggests in the post that cryptocurrencies’ are moving from the current “investment …
Altcoin / April 17, 2019
Crypto Markets Fall Further Amidst Week of FUD From Asian Sector
The crypto markets are continuing to take a tumble today, June 23, following slew of FUD-like news from the crypto sector in South Korea and Japan. Market visualization from Coin360 Leading South Korean exchange Bithumb was hacked for $30 million, and Japan’s financial regulator FSA has apparently renewed their crackdown on cryptocurrency exchanges after sending out six more business improvement notices this week. Bitcoin (BTC) is edging closer to $6,000, trading for around $6,105 at press time, down less than 1 percent over a 24 hour period. Bitcoin price chart. Source: Cointelegraph Bitcoin Price Index Ethereum (ETH) is slightly down, …
Ethereum / June 23, 2018
Look out below! Ethereum derivatives data hints at further downside from ETH
Ether (ETH) is down 38% in three weeks and the current $2,000 level is 59% below the $4,870 all-time high that was reached in November 2021. Additional newsflow that added to the current marketwide volatility were the bankruptcy fears that emerged after Coinbase, the largest United States exchange, reported a $430 million first-quarter 2022 loss. In the most recent 10-Q filing Coinbase included the following disclosure: “In the event of a bankruptcy, the crypto assets we hold on behalf of our customers may be subject to bankruptcy proceedings.” Regulatory uncertainty was also partially responsible for Ether’s sharp correction. On May …
Markets / May 12, 2022