Korean authorities scrutinise crypto exchanges’ use of personal data
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.
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”.
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.