cryptocurrency exchanges

Results published by South Korean government shows that they have carried out security inspection of cryptocurrency exchanges. Only 7 have passed in implementing all the required 85 applications. 14 exchanges that were inspected earlier haven’t improved yet. Security standards haven’t been met in 17 new cryptocurrency exchanges.

Seven Cryptocurrency Exchanges are Passed

On Thursday, Ministry of Science and ICT of South Korea has announced the results of the security inspection they conducted in multiple exchanges. During September-December 2018, the concerned ministry in collaboration with KISA (Korea Internet and Security Agency) conducted the inspection in 38 exchanges. 21 exchanges were inspected between January and March 2018. For the first time ever 17 exchanges are inspected.

After these inspections were done last year, 21 exchanges were recommended. However, they were asked to improve certain security measures. Necessary improvements have since been made by just 7 exchanges. They have met all 85 items in the checklist of the inspector. That’s why these seven have been passed by South Korea’s Ministry of Science and ICT and KISA.

Reports say some of these checklists include system security (account management, network separation, and administrative security), virtual currency wallet management, and many more.

cryptocurrency exchanges

The 7 exchanges that are passed by South Korean authorities after thorough inspection are:

  1. Upbit
  2. Huobi Korea
  3. Hanbitco
  4. Coinone
  5. Korbit
  6. Gopax
  7. Bithumb

Why did Most Cryptocurrency Exchanges in South Korea Fail?

Reports published on Thursday says that most of the cryptocurrency exchanges didn’t meet the basic security standards. It was found out that the 14 crypto exchanges that were previously asked to make improvements haven’t made any improvement yet. Government officials say that these exchanges, in particular, still need to make improvements of around 51 security items. This means that these exchanges are still exposed to hacking attacks.

When inquired about the 17 newly identified cryptocurrency exchanges, the officials said that on-an-average 61 security related items have been found to be generally weak. This makes the overall security level of these exchanges weak.

The South Korean Ministry of Science and ICT has said that they will continue reviewing and inspecting the security-related flaws of the cryptocurrency exchanges in South Korea. This will help in protecting the crypto investors from any kind of hacking incident.

Photo Credit: