[Photo by Yoo Dae-gil = dbeorlf123@ajunews.com]
SEOUL, Dec. 21 (Aju News) -- South Korea promised to impose tight regulations on domestic cryptocurrency exchanges, alerted by a series of attacks by hackers that led to the shutdown and bankruptcy of Youbit, a Seoul-based exchange, this week.
The Ministry of Science and Technology said it would conduct regular security checks on 10 cryptocurrency exchanges, urging them to bolster security. Related technical support would be provided.
"At security check-ups, the online security system of cryptocurrency exchanges was found to have fallen short of our standards," a ministry official said, warning of strong administrative actions and fines.
To enhance security, the ministry asked exchanges with their annual sales exceeding 10 billion won (9.2 million US dollars) or average daily visitors of more than one million to run the Information Security Management System (ISMS) which evaluates and certifies the properness of corporate information security systems.
Four major cryptocurrency exchanges -- Bithumb, Coinone, Korbit and Upbit -- were ordered to get certified as soon as possible.
The Korea Communications Commission, a state watchdog, will increase the maximum amount of fines and temporarily shut down frequent violators. Exchanges should apply for indemnity insurance to protect clients.
Hacking attacks on cryptocurrency exchanges have posted a threat to the cryptocurrency market.
reporter
Park Sae-jin
swatchsjp@ajunews.com
