Eight major cryptocurrency exchanges in the South Korean market including Korbit, Coinone, Upbit, Coinplug, RippleForYou, and Coinpia have been fined in the range of $10,000 to $25,000 for having poor security measures.
Fined For Poor Security
With the exception of Bithumb, the largest cryptocurrency exchange in South Korea, which is also the second biggest trading platform in the global cryptocurrency market, the majority of cryptocurrency exchanges in the country have been fined by South Korea Communications Commission (KCSC).
The eight cryptocurrency exchanges that were fined for a total amount of $130,000 are said to be in violation of the Information and Communication Network Act and Privacy Act.
According to Yonhap News, a South Korean mainstream media outlet, KCSC alongside the Ministry of Science, Technology, and Information, and the South Internet Development Agency launched a full investigation into local cryptocurrency exchanges from October 10 to December 28 in 2017.
Out of the 10 cryptocurrency exchanges that were investigated by the five ministries, eight were found to be in violation of the Information and Communication Network Act, and to have implemented poor security measures.