Recent Crypto Security Inspection In South Korea Leaves Seven Exchanges With A Passing Grade

A recent security audit amongst cryptocurrency exchanges was recently performed by several ministries within the South Korean government. The audit included 85 different security aspects, which investigated the inner workings of these exchanges from September to December last year. Out of the 21 exchanges inspected, only seven managed to pass the necessary criteria, which is only a third of the audited exchanges.

The seven exchanges that cleared every test are:

  • Upbit
  • Bithumb
  • Gopax
  • Korbit
  • Coinone
  • Hanbitco
  • Huobi Korea

The other exchanges are, as a result, “vulnerable to hacking attacks at all times because of poor security,” according to a statement from the Ministry of Economy and Finance. Along with this ministry, the inspections involved the help of the Ministry of Science and ICT, along with the Korea Internet & Security Agency.

Though the other platforms remained unnamed, they named the security issues, saying that it came down to “insufficient establishment and management of a security system, such as basic PC and network security.” The inspections included a look at the security of administrative functions, networks, system, and overall operations. They also examined the backup support for the database and wallet management.

With so many major hacks occurring in South Korea, like Coinrail and Bithumb, the loss of millions of dollars made it evidently clear that improvements in security are necessary. In February last year, the authorities believed that hackers from North Korea were behind these hacks. In response, infamous hacking group Lazarus may have been behind the $571 million hacking over the course of the year last year.

With these breaches in security, the Financial Services Commission in South Korea asked politicians to pass a bill in July. This bill targeted the regulation of domestic cryptocurrency exchanges with substantial urgency in an attempt to strengthen security. Clearly, the efforts were more needed than originally anticipated, based on the results of this audit.

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