It has barely been 24 hours since South Korean regulators green flagged the move to ban anonymous accounts, but the country’s Communications Commission has already hit eight exchanges with heavy fines. Those most severely hit include Korbit, Coinone, Upbit,CoinPlug, and Coinpia. Eight out of the ten major cryptocurrency exchange players were slapped with fines totaling $130,000.00.
Some individual companies received fines ranging from $10,000 to $25,000, while the hardest-hit had to cough up around $50,000.
Bithumb however, being the largest player in the market, seems to have all its ducks in a row. It was not affected by the fines.
According to South Korean media sources, South Korean crypto exchanges were under investigation from 10th October to 28th December 2017.
What is Making These Fines Necessary?
Well, according to an official statement from the South Korean Communication Commission quoted on CCN, the fines are for violations of:
- The Information and Communication Network Act
- Privacy Act
- Not segregating user accounts that have been inactive for more than a year.
- Lacking security breach detection tools.
- Little to no implementation of security measures
Why Is the Government Alarmed?
Simply put, there seems to be a vast increase in the use of cryptocurrency in South Korea and the world at large. While this seems to be a good thing, the South Korean regulators note that there is an equal and alarming decline in the implementation of security measures by most crypto exchanges.
What Measures are Being Implemented to Curb This?
Finding ways to safeguard user passwords, integrating a better way of protecting user information and providing access to control device installation and operations. In essence, a 30-day grace period has been given to these players to comply with communicated standards.
Why Could This Be a Positive?
A KCSC spokesperson told the press that the penalties imposed on the major players were just a slap on the wrist compared with the caveats they had in their systems. Seeing as 5 ministries were involved in these investigations, it goes to show how vested the South Korean Government is in embracing cryptocurrency.
The Crypto Market in South Korea as it Stands Today
The move by the government to implement regulation in the cryptocurrency space, while it may have seemed like a step backwards, seems to actually have investors and traders in mind. The move seeks to prevent the theft of user information, safeguard account data, and protect funds.
Say what you want but South Korea is making moves towards embracing cryptocurrency. Will these methods work? Do you think other countries will adapt their own methods? Let us know.