Korea Starts On-Site Inspections of Bitcoin Exchanges

[alyssa85]

https://news.bitcoin.com/korea-on-site-inspections-bitcoin-exchanges/

The Korea Communications Commission and the Ministry of Science and ICT announced on Tuesday that they will cooperate to conduct on-site inspections of bitcoin exchanges, according to local publications. Zdnet Korea elaborated:

"The Korea Communications Commission (KCC) plans to conduct on-the-spot checks on the implementation of technical and administrative safeguards for personal information pursuant to the Act on the Promotion of Information and Communication Network Utilization and Information Protection, and to strictly rectify any violations."

In addition, “the KCC will provide information security consulting and technical support to service providers who handle digital currencies online, and will guide them to reduce their own security vulnerabilities,” the news outlet clarified.

“This check is due to the increase in user damages due to subsequent hacking accidents involving virtual wallet hacking and personal information leakage,” The Korea Herald wrote. “The government plans to prevent the occurrence of similar damages and to provide an environment for safe service utilization through inspection of companies handling virtual currencies.”

In July, the country’s largest bitcoin exchange, Bithumb, was hacked and the personal information of over 30,000 customers was leaked. In addition, US cybersecurity firm Fireeye revealed earlier this month that a cyber-espionage group called “Temp.Hermit” launched cyber attacks against Korean bitcoin exchanges between May and July.

It looks like this was sparked by the Bithumb fiasco - they don't want it to happen again. 

[Raxitto]

South Korea goes to the field to inspect the crypto-currency brokers.
The South Korean Ministry of Science and Technology and the Communications Commission (KCC) announced on-site inspections at digital currency brokers. The bodies seek to increase the cybersecurity of providers and enforce compliance with established privacy laws. In addition, the KCC will provide consulting and technical support to crypto-currencies brokers in an attempt to reduce risks related to the vulnerability.More counties should definetly follow there steps.
Watch and learn.

[erikalui]

They seem quite positive in this article rather than other countries who are pretty negative when they talk about investigating exchange websites and rather consider users as tax invaders and disregard the use of bitcoins. If Korea sets up any laws and helps to give users an insurance of their funds, that would be the best thing to expect as these days too many exchange websites are under attacks. Like coinbase, there should be an insurance for these hacks.

[amacar2]

Now Korea seems following pathways of chinese government sooner or later all government will try to have deep control over bitcoin exchanges and they will put all their efforts to track each and every bitcoin transactions but all of their effort will go to vein.

This will increase interest over decentralized trading platform and P2P marketplaces like localbitcoins. In short term this can have negative effect on price.

[subSTRATA]

Now Korea seems following pathways of chinese government sooner or later all government will try to have deep control over bitcoin exchanges and they will put all their efforts to track each and every bitcoin transactions but all of their effort will go to vein.

This will increase interest over decentralized trading platform and P2P marketplaces like localbitcoins. In short term this can have negative effect on price.

i think the exact opposite; korea has historically, been receptive to technologies and innovation. my thought is, they're having exchanges examined in order to ensure safety and security for the users, and make sure the exchanges are doing exactly what is advertised without any illegal / shady business going on behind the scenes. that being said, i think overall, this is a big step in the right direction, and will probably increase both bitcoin's price and korea's influence in the cryptocurrency scene. hopefully, we might see a cryptocurrency community based in korea that is relatively scam - free and an envoronment in which bitcoin can expand with newcomers feeling comfortable and reassured that they won't be scammed or stolen from.