South Korean regulators launch investigation into crypto exchanges. More specifically, the authorities will look into how the exchanges handle the personal data of users.
3 July, AtoZ Markets – Two Korean financial regulatory bodies have made a public announcement, thus informing the public about their joint investigation into the matter of how cryptocurrency exchange operators handle the personal data of its clients.
South Korean Regulators Launch Investigation Into Crypto Exchanges
According to the local news outlets, the Korea Communications Commission (KCC) and the Korea Internet & Security Agency (KISA) are launching an investigation into the process of how major crypto exchanges deal with the personal data of their clients. The KCC and KISA are expected to investigate the potential breaches of data privacy rights by some of the crypto exchange operators along with the third party service providers. For instance, regulators will consider smartphone applications that are designed for services such as traveling, shopping, and real estate.
The investigation will also reportedly examine the status of administrative and technical protection measures within the crypto exchanges that are related to clients’ personal data. These measures comprise the access control measures, personal data encryption, anti-tampering measures, and malware protection.
Following the review of the collection, provision, use, and destruction of personal data by crypto exchange operators and third parties, the regulator are aiming to enforce administrative penalties in case they discover any infringements of the South Korean data protection laws.
What caused South Korean Crypto Investigations?
The local media also reports that the KCC will investigate eight crypto money managing firms that have received improving orders after breaching Korea’s Personal Information Protection Act in 2017. The report refers to the local source stating that recent hack of local crypto exchanges has been the key driver of the investigations’ wave.
The recent hacks include the last month’s hack attack on the major Korean exchange Bithumb. KISA has been investigating the reasons behind the hack. In fact, prior to the attack, the exchange has been given a green light from the South Korean regulatory authorities.
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