Korean Government: 11 out of 21 Crypto Exchanges Complete Security Measures

Korean Government: 11 out of 21 Crypto Exchanges Complete Security Measures

Security

The South Korean government has announced the outcome of its inspection of 21 cryptocurrency exchanges. While a number of exchanges have completed implementing both short-term and wallet management measures, many security vulnerabilities remain at most exchanges.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

21 Exchanges Inspected

Korean Government: 11 out of 21 Crypto Exchanges Complete Security MeasuresSouth Korea’s government has announced the result of its mid-term review of 21 cryptocurrency exchanges. The inspection was conducted in June and July by the Korea Internet and Security Agency (KISA) and the Korean Ministry of Science and Technology.

KISA security experts visited each exchange to check on the 85 items identified during its previous crypto exchange inspection, conducted between January and March. They focused on 17 items which needed immediate implementation; six were short-term measures and 11 concerned crypto wallet management.

Korean Government: 11 out of 21 Crypto Exchanges Complete Security Measures“Intermediate checks were carried out in such a way as to confirm whether improvements had been made, focusing on the 17 security items recommended for quick action,” the government explained. These items include dedicated security and management staff, a password management system, crypto deposit and withdrawal controls, and a system to monitor wallets for abnormalities.

The agencies revealed that 11 out of 21 exchanges have completed the short-term measures. In addition, eight of them have also improved their wallet management systems. The eight are Upbit, Bithumb, Korbit, Coinnest, Coinlink, Coinone, Coinplug, and Huobi Korea, local media detailed. The government reiterated:

In the management of virtual currency wallets, most of the vulnerabilities in the business have not yet been improved.

Furthermore, twelve companies have been found to have insufficient security procedures to prevent data leakage and loss of funds from their cold wallets. Ten companies have inadequate systems to monitor hot wallets for suspicious activities. In addition, at least ten businesses lack wallet backup and recovery measures.

Further Inspections Planned

The final check on the implementation of recommended measures will be carried out next month, the agencies noted, adding that any new crypto exchanges will also be inspected.

Korean Government: 11 out of 21 Crypto Exchanges Complete Security Measures“Because of the weak security of virtual currency exchanges, we should be careful in investing,” Kim Jong-sam, a spokesperson for the Ministry of Information and Communication, commented. “We will continue to check virtual currency exchanges to improve security.”

Referencing the hack of Coinrail and Bithumb in June, KISA described that “the leakage of virtual currency due to the hacking of recent dealers has directly led to the damage of users,” adding that after checking 85 security items, “there are many dealers with low security.”

Emphasizing that they have been asking crypto exchanges to “improve security levels by completing the recommendations for improvement,” the agencies revealed:

We plan to support the improvement of the security level of the dealers through continuous inspection of the dealers.

What do you think of the Korean government’s review? Let us know in the comments section below.


Images courtesy of Shutterstock and Kisa.


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South Korea Increases 65% Budgetary Allocation to Blockchain, AI and Big Data Space

South Korea, one of the most crypto friendly nations of the world is banking big on the use of blockchain technology for the transformation of its economy. The South Korean government has increased the allocated budget toward its ‘Growth through Innovation’ investment program particularly focusing on blockchain and AI by a sharp 65 per cent in 2019.

In the latest meeting of South Korea’s Finance Ministry authorities, Kim Dong-Yeon has confirmed that the government has earmarked 5 trillion won or $4.4 billion toward its innovation program in 2019. The South Korean government has been keen on developing the infrastructure of the platform economy with a key focus on Blockchain, Artificial Intelligence and Big data.

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The Finance Ministry has quoted:

“The measures will help facilitate the platform economy, which in turn will help speed up innovative growth. The government will focus on promoting big data and AI, developing blockchain technology to ensure data management security and boosting the sharing economy.”

According to the government’s portal, the blockchain, AI and big data sector have seen an investment of  579.9 billion won ($511 million) in 2018. In 2019, the ministry revealed that an investment of 1,040 billion won ($918 million) been planned for the sectors, a near increase of 80 per cent into the sector.

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South Korea Allocates One Trillion Won for Blockchain Technology in 2019

South Korea is showing a greater interest towards the field of cryptocurrencies, budgeting upwards of one trillion won (around $880 million) for the fields of blockchain technology, AI, and the sharing economy. 


South Korea Doubles Investment in Blockchain

According to an official press release, South Korea will invest a total of 5 trillion won (around $4.4 billion) in its “Growth Through Innovation” plan. The strategy will fund a total of eight pilot projects, which plan to develop a “platform economy” comprised of a digital platform for big data analytics and transactions, as well as a hydrogen fuel cell supply chain.

South Korea plans to invest a total of between 9 and 10 trillion won in the initiative, recognizing the nationwide impact that it would have on other industries.

The official release also places an emphasis on blockchain-based technology as an important part of boosting the sharing economy:

The government will focus on promoting big data and AI, developing blockchain technology to ensure data management security and boosting the sharing economy.

The fields of big data, AI, and blockchain will receive a total funding upwards of 1 trillion won in 2019 — which is almost twice as much as what it received in 2018 (579.9 billion won).

Signs of Positivity

South Korea is clearly taking blockchain technology and cryptocurrencies seriously.

Apart from the massive investments which it intends to pour in the field, South Korea recently saw the opening of industry-specific research centers. These are designated to provide comprehensive analyses of the cryptocurrency market conditions within the country and abroad.

In July, the country also announced the creation of the Financial Innovation Bureau (FIB) – a governmental structure part of the Financial Services Commission (FSC) dedicated to working on policies concerning the field of cryptocurrencies, big data, and fintech.

Do you think that South Korea is moving in the right direction by directing resources towards the field of blockchain-based technologies? Don’t hesitate to let us know in the comments below! 


Images courtesy of Shutterstock.