Two Thirds of Korean Crypto Exchanges Fail Government Security Check

Only a third of cryptocurrency exchanges legalised got a full pass in a new supervision confidence audit.

The Ministry of Science and ICT, the Korea Internet Security Agency and the Ministry of Economy and Finance legalised a sum of 21 crypto exchanges from Sep to Dec 2018, examining 85 different confidence aspects.

Notably, only 7 of them – Upbit, Bithumb, Gopax, Korbit, Coinone, Hanbitco, and Huobi Korea – privileged all the tests, CoinDesk Korea reported Thursday.

The remaining 14 exchanges are “vulnerable to hacking attacks at all times because of bad security,” the Ministry of Economy and Finance said, though it didn’t name the platforms. The agencies put down the confidence failures to “insufficient investiture and government of confidence system such as simple PC and network security.”

The exchanges were inspected in a examination that looked different aspects of administrative, network, system and operational security, as well as database backup and wallet management.

South Korea has mislaid many millions of dollars in cryptocurrencies through hacks at exchanges such as Coinrail (over $40 million) and Bithumb (over $30 million).

Back in February, the country’s officials said that they believed North Korean hackers were behind the attacks. Indeed, North Korea’s barbarous hacking group, Lazarus, has been reported to be behind the theft of $571 million in cryptocurrencies since Jan 2017, according to a news from cybersecurity businessman Group-IB.

In the arise of the confidence breaches, South Korea’s Financial Services Commission, in Jul of last year called on politicians to pass a check controlling domestic cryptocurrency exchanges with coercion in sequence to opposite messy confidence in the industry.

Test fail picture around Shutterstock 

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