While South Korean officials are considering stricter regulations in regards to the crypto market, South Korean KCC Fines BTC Korea.com for leaked user data and failure to safeguard the private information.
14 December, AtoZForex – Earlier this week, the communication regulator of South Korea, the Korea Communications Commission (KCC), has fined one of the cryptocurrency exchange operators. Specifically, the KCC has imposed a fine on one of the digital currency exchange operators for supposedly leaking the private data of its users.
South Korean KCC Fines BTC Korea.com for Leaked User Data
According to the findings of the KCC, the BTC Korea.com, the operator of the country’s largest cryptocurrency exchange, Bithumb, has shown negligence in safeguarding private data of its users. As a result, the commission has decided to fine the operator 60 million won ($54,970) as a punitive action.
The exchange has appeared under attack by hackers who stole the private data of users. As per the KCC, the platform has stored all the data about clients without any encryption. Moreover, the authority stated that the cryptocurrency exchange operator did not update its antivirus software.
Local Korean reports have quoted the spokesperson from the KCC:
“The punitive action was taken as the operator did not comply with protective steps, making it vulnerable to hacks and causing leaks of personal data and financial damage.”
South Korean crypto community rises
This fine appears as the first time that a South Korea officials have imposed a fine on the cryptocurrency exchange.
As of the moment, the world is existing in so-called cryptocurrency frenzy, while most of the top cryptocurrencies post newer record highs almost every day. Following the trend, South Korean crypto enthusiasts are rising in numbers. In fact, according to the online sources, there are almost 1 million South Koreans that hold cryptocurrencies.
Yet, the crypto market has also attracted the interest from the government’s side – some month ago, South Korea has banned all ICOs across the country. The decision was taken as a preventive measure in order to protect investors’ community.
The Prime Minister of South Korea has stated:
“…young Koreans including students are jumping in to make quick money and virtual currencies are used in illegal activities like drug dealing or multi-level marketing for frauds. If we let things continue, I feel some serious pathological phenomenon could occur.”
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