Only Seven Exchanges Passed Government Security Inspection in Korea

7 Korean Crypto Exchanges Pass Government Security Inspection

The South Korean government has introduced the results of its safety review of cryptocurrency exchanges. Just seven of these passed all 85 of the review points. Fourteen previously-inspected exchanges still haven’t improved and 17 new crypto exchanges failed to meet safety standards.

South Korea’s Ministry of Science and ICT declared the outcome of its safety review of cryptocurrency exchanges on Thursday, according to local press. In cooperation with the Korea Internet and Security Agency (KISA), the ministry commanded a total of 38 exchanges between September and December this past year. Twenty-one of these were scrutinized between January and March last year while 17 exchanges were scrutinized for the first time.

Following the last review, recommendations were awarded to the 21 exchanges to improve specific security measures. Seven of these have made the required improvements and fulfilled all 85 things on the inspectors’ checklist. The 85 items assessed”contain system safety such as administrative protection, community separation and accounts management… and digital currency wallet direction,” Money Today elaborated.

Most of them have weak security except for the seven facilities that satisfy all 85 inspection items.

The majority of the cryptocurrency exchanges inspected failed to meet standard security criteria. The 14 previously-inspected exchanges haven’t made the necessary improvements, government officials told reporters.

All these 14 exchanges showed they still must improve on 51 safety items normally, so that they”could be subjected to the possibility of hacking attacks constantly,” Zdnet Korea noted. In terms of the 17 new crypto exchanges, the information outlet added that their”overall safety amount was shown to be weak.” Newsprime elaborated:

By examining 85 items of the basic security requirements for 17 newly identified exchanges, it has been confirmed that the security level of these exchanges is generally weak due to the lack of 61 security items on average.

The information outlet more detailed,”Specifically, it’s been verified that a large part of the traders have a very low amount of safety like network access and separation control in addition to the absence of management and establishment of safety systems like basic PC and network security.” The ministry said it will continue to review and scrutinize crypto exchanges for security defects, with a concentration on protecting investors from hacking episodes.

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