Only 12 of SoKor’s 23 Crypto Exchanges Passed Industry Probe

Jul 13, 2018 at 23:29

The self-regulatory review of the Korea Blockchain Association (KBA) saw 12 out of 23 cryptocurrency exchanges passing the transparency standards set per se by the industry group.

Exchanges that met the criteria, according to a local portal, Korea Herald, are namely Coinone, Korbit, Bitthumb, Gopax, Dexko, Hanbitco, OKCoin Korea, Huobi Korea, Upbit, Coinzest, Neoframe and Cpdax. However, two other exchanges, Komid and Sunny7, had backed out from the KBA-led investigation.

Minimum requirements to see approval from the committee include the adoption of cold or offline wallets, compliance with anti-money laundering norms, and possession of a certain minimum in assets, among others

South Korea’s largest self-regulatory cryptocurrency industry body, KBA has at least 66 member-companies. It launched the investigation last May and tapped third-party experts to spearhead the probe.

However, KBA chairman Jhun Hai-jin admitted that further scrutiny into the results of the review yielded to the discovery of loopholes. Some of the approved exchanges displayed a “huge gap in the level of handling cybersecurity risks.”

“This inspection does not guarantee the absolute safety of the 12 exchanges…The result indicates the 12 exchanges satisfy the minimum requirement for their operations. It is like a driver’s license. It is hard to tell whether they are good drivers or not,” the official was quoted.

Although declining to specify these flaws, Hai-Jin said these could render those exchanges vulnerable to cyberattacks.

Of those given the nod, Bithumb, one of the country’s largest exchanges by trading volume, disclosed last June encountering a hack that led to $30 million-worth of cryptocurrencies lost.