South Korean Regulators Conduct Onsite Inspections Of Exchanges

December 27, 2017 6:29 pm Published by
Bitcoin

After Korean exchange Youbit was hacked earlier this month, South Korean authorities have begun conducting onsite inspections of domestic bitcoin exchanges, Cryptocoinsnews reported Wednesday.

An update published following one such onsite visit shows inspectors were not pleased by what they found, the report said.

The Office for Government Policy Coordination published an official notice saying regulators conducted onsite inspections of more than a dozen bitcoin exchanges to determine whether they were in compliance with regulations governing cryptocurrency trading, the report said.

A rough translation of the notice says “As a result of conducting on-site inspections on the major virtual currency exchanges, most of the surveyed companies (10 companies) conducted administrative and technical security such as installation and operation of access control devices and encryption measures of personal information Overall, the measures were found to be inadequate,” the notice read.

On Dec. 19, the Seoul-based small exchange Youbit was struck by a hacking incident, prompted the inspections, the report said.

The hack, the second time Youbit had been breached in 2017 alone, prompted Yaipan to immediately halt trading on the exchange and file for bankruptcy.

Although Youbit was a small exchange — and the hack resulted in the theft of just 17 percent of the company’s assets — the incident became quite controversial after South Korean authorities alleged the hack was perpetrated by hackers acting on behalf of the North Korean regime, the report said.

WN.com, Jack Durschlag



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