Korean authorities scrutinise crypto exchanges’ use of personal data

July 02, 2018
Chris Wheal

Following major hacks at Korean crypto exchanges, two supervisory agencies are said to be investigating possible breaches of use of personal data at cryptocurrency exchanges.

Post major hacks at Korean cryptoexchanges, agencies are investigating use of personal data at cryptocurrency exchanges Source: Shutterstock.com

The Korea Communications Commission (KCC) and the Korea Internet & Security Agency (KISA) launched a joint probe into a number of crypto exchange firms over possible infringement of data privacy rights through third-party service providers.

The investigation will reputedly “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”.

Hacking impetus

Any breach of Korea’s Personal Information Protection Act found by either crypto exchanges or third parties will receive administrative penalties.

In early June, Bitcoin tumbled 10% after Coinrail, a smaller Korean exchange, announced it was hacked. Bithumb also lost $30m in coins after it too was hacked last month.

The Korea’s Financial Services Commission has just issued a new framework for cryptocurrencies, which while requiring stricter due diligence of exchanges, is seen as largely positive towards virtual currencies.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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