How Bitcoin, Ethereum, Ripple and Litecoin will be affected by South Korea’s fines for cryptocurrency exchanges not abiding with privacy guidelines

south korea blockchain crypto

South Korea fines cryptocurrency exchanges not abiding with privacy guidelines

South Korea is increasingly regulating the cryptocurrency market in order to avoid the usage of cryptocurrencies for illegal cash transfers as well as illegal activities. In a move which can be attributed to the same goal, the Korean Communications Commission fined around $ 130,000 on 8 different cryptocurrency exchanges. The fines were levied due to the lax attitude of the cryptocurrency exchanges towards privacy rules and regulations.

Cryptocurrency exchanges: Coinone, Korbit, Upbit

Some of these cryptocurrency exchanges have heavy volumes like Coinone, Korbit, Upbit. These exchanges not only failed to abide by the privacy guidelines but also did not protect user data as well. Many of these exchanges violated several provisions of the act on the protection of personal information.

Some of the mistakes which are committed by these exchanges include not deleting the information of the users who have not been active on the exchanges for more than one year. Also, they even shared some of the personal information of the users with third-party vendors. They also stored the personal information of the users at offshore servers.

The commission has given a time frame of 30 days

The commission has given a time frame of 30 days for the exchanges to not only be compliant but to ensure that they are using failsafe management plans in order to protect the data of the consumers.

According to the chairman of the commission, Lee Hyo-Seong, the astronomical rise of the retail investors in cryptocurrencies exchanges and cryptocurrency trading has not only made it a riskier asset but also the mishandling of information is pretty dangerous for the investors. In order to limit the damage in the future, the commission would act against the cryptocurrency exchanges which are violating the rules and regulations.

South Korea Cryptocurrency Regulations

This is not the 1st time that the commission has fined cryptocurrency exchanges. In December 2017, the commission also fined another cryptocurrency exchange by the name of Bitthumb. The exchange was fined $ 50,000 for not taking proper steps to protect the data as well as for not creating a proper infrastructure to prevent hacking attempts.

How can regulations help cryptocurrency exchanges

With these initiatives of the regulator, hopefully, the cryptocurrency exchanges in South Korea would become more serious about protecting user data as well as the money which the investors are pouring into cryptocurrency exchanges. Moreover, it is in the interest of the investors that the exchanges are becoming more alert about the privacy rules and regulations as well as providing a more secure environment to trade and invest in cryptocurrencies.

Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.