South Korea’s FTC is conducting Investigations on Cryptocurrency Exchanges

1616 Total Views

Cryptocurrency News

The South Korean Fair Trade Commission is conducting in-person investigations into13 of the nation’s top cryptocurrency exchanges. Other government parts are proposing to concentrate further measures aimed at protecting citizens who trade in the digital assets.

According to a press release which is issued by several South Korean Government Agencies on December 20, the country’s Fair Trade Commission (FTC) has sent the agents on a three-day “field survey” of the nation’s 13 “leading” cryptocurrency exchanges. The investigations, which began the same day, are assigned to uncover the violations of the consumer laws.

The FTC has planned to “take action in accordance with relevant laws and regulations”.

Along these lines, the presser announced several measures in addition to the visits. According to the Ministry of Science and Technology, the exchanges Bithumb, Korbit, Coinone, and Upbit (which are among the 13 being investigated) must seek and receive “2018 Information Security Management System Certification,” and are urged to enhance their security measures. The certification is required for any company “subject to sales of more than 10 billion won [over $9 million at press time] and average daily visitors of 1 million or more.”

Along with these lines, the press release also announced the several measures including the visits. According to the Ministry of Science and Technology, the exchanges Bithumb, Korbit, Coinone, and Upbit (which are among the 13 being investigated) must ask and receive “2018 Information Security Management System Certification,” and are supported to improve their security measures. The certification will be required for any company, ” subject to sales of more than 10 billion won [over $9 million at press time] and average daily visitors of 1 million or more.”

The exchanges that are not required for meeting this standard will be subject to the Personal Information Management System.

Which is described as:

“An autonomous certification system that assesses the comprehensive management system of collecting, using and destroying personal information of companies.”

The release also regards that the Korean Customs Service will investigate the illegal transfer of funds overseas. On December 15, the Ministry of Commerce, Industry, and Energy sent a “letter of cooperation” to “local governments and industrial complexes” supporting them to crackdown the illegal cryptocurrency mining operations.

The document says:

“The Financial Supervisory Service (FSS) has held practical consultations with banks that are planning to provide a service to establish a system for verifying the identity of [cryptocurrency exchange] users.”

It also includes that the FSS and the Financial Services Commission, both of which are signatories, plan to inspect these systems and take measures to ensure their smooth functioning which will begin in January 2018.