12 South Korean Crypto Exchanges Passed the Regulatory Reviews
The Korea Blockchain Association (KBA) affirms the security standards of 12 cryptocurrency exchanges on Wednesday, including major players such as Bithumb, Coinone, Korbit and Gopax.
According to their report, 12 out of 14 Korean crypto exchanges have shown positive result in the regulatory review, and they all pass the minimum requirements of self-imposed regulations that launched by KBA in May. The 12 exchanges that passed the inspection are: Dexco, NeoFrame, UPbit, Bithumb, Gopax, OKCoin Korea, Korbit, CoinOne, Coin Jest, CPDAX, Hanbit and Huobi Korea. While the other two, Sunny 7 and Komid withdrew the inspection.
It was also reported that the self-imposed inspections is divided into two sections: the general review and security assessment. The security assessment was based on data submitted by the 12 exchanges and conducted through four rounds of interviews with their security officers. KBA reviewed 66 criteria refer to 8 big sections, including user certification, network, wallet, server, access control, restoration, management and personal data protection.
The general review inspected 28 general reviews, including whether the exchanges have more than 2 billion won (US$1.78 million) in capital, the management methods, the procedures for new coin listing, at least 70% of the cryptocurrency deposits must be stored in a cold wallets, and prevent market manipulation.
Jhun Ha-jin, head of KBA’s self-regulatory committee said that even passing the evaluation does not mean the exchanges are perfect from security aspect. He indicated that there are “huge gaps in the levels of handling cyber security risks” between these 12 exchanges, and the security standard is the minimum standard which cannot be seen as an immunity from hacking attacks.
The KBA is a self-regulating group for local blockchain industry made up of 23 companies. In last December, the association has released a blockchain self-regulatory regulation protocol and established a self-regulatory committee in February to manage the qualification review process on domestic cryptocurrency exchanges.