South Korean Regulator Punishes Cryptocurrency Exchanges For Disobeying Rules. It is clear that South Korea is tough on Anonymous Crypto Exchanges. The government makes an announcement yesterday that it is imposing fines. The fines go to exchanges that trade on the bitcoin without following the proper rules. The penalties are totaling 141 million won. This amount is equivalent to $130, 000. It goes to 8 companies. They are all culpable of conducting anonymous crypto exchanges. Also, this is what authorities deem as illegal and unacceptable.
Why Did South Korea Punish Anonymous Crypto Exchanges?
Through a public announcement, authorities say that the penalty is as a result of a thorough investigation. Korea Communications Commission (KCC) reports that the agency surveys for 2½ months. The survey takes place between October 10, 2017, and December 28, 2017. This review involves ten domestic cryptocurrency exchanges. At the end of the study, it emerges that eight exchanges are violating the rules. KCC has the mandate to ensure there is proper consumer privacy protection. Because the eight domestic exchanges break the laws , they get the fine.
List of the eight companies KCC finds violating the rules
The latter is a cryptocurrency wallet service. It is also among those culpable. KCC says that each exchange receives a different amount of fine. But the agency is quick to the point that each may receive a penalty between $9, 000 to $14, 000. The company says that some exchanges are making big mistakes. It means that some trades fail to delete users’ information from the database. Also, this is even after the user stops using the service for over 12 months.
Other violations include the storing of clients’ data outside of South Korea. Lee Hyo-Sung, the chair of the agency says it is high time exchanges follow the law. If private exchanges do not want to follow the law, they will incur a lot of costs.
Virtual currency speculation and hacking of handling sites are increasing
“Security threats such as virtual currency speculation and hacking of handling sites are increasing. Above all, this is why we need to be careful. Unfortunately, the actual situation of personal information protection is fragile. Also, this is happening in sites that handles clients’ sensitive data. We cannot tolerate this. Therefore, we will reduce the damage of users through more strict sanctions,” Lee says. Now that the eight companies are receiving fines, what is next? KCC tells the eight cryptocurrency exchanges to take immediate action. They should resolve the problem within the next 30 days.
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It is after rectifying the problem that the companies will file a report. They will hand in the report to the agency before the end of the 30 days. Further and stricter measures are in the pipeline. The company says that there will be more measures. The aim is to safeguard users’ privacy.
Among the measures, South Korea is bringing are rules to manage private keys. There will also be rules on cryptocurrency wallets and other transactions. The agency says it will stop at nothing in its efforts to ensure consumer protection. South Korea is one of the biggest consumers of bitcoin in the world. It is the third after Japan and USA.
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