The Korean Communications Commission (KCC) and the Korean Internet & Security Agency (KISA) will be launching a joint probe into crypto exchange operators’ handling of personal data, Chosun news reports Monday, July 2.

According to Chosun, the investigation has come in the wake of growing concerns over the security of users’ personal information on cryptocurrency exchanges, following a series of attacks on Korean exchanges in recent months. KCC and KISA will be working together to conduct a series of on site surveys assessing technical and administrative protection measures related to personal information. The examination will focus on access controls of personal information processing systems, tampering prevention, tampering of personal information, encryption of personal information, and prevention of malicious programs.

The Chosun article states that cryptocurrency exchanges won’t be the only companies being put under the microscope. Financial institutions distributing apps for shopping, travel, and real estate will also be investigated, as will ride sharing and dating apps.

Following the assessment, the KCC and KISA will prescribe necessary corrective measures to be taken by the companies in question. Failure to make these corrections will be considered a violation of the Information and Communication Network Act of 2017, resulting in fines and penalties.

The KCC and KISA will also be reexamining 8 previously investigated virtual money handling companies. These companies had all been required following a previous investigation to make security improvements. A failure to have made these improvements will also incur fines and penalties.

Last month was the worst month on record for Korean crypto exchanges. On June 9, Coinrail, a popular South Korean cryptocurrency exchange, was hacked for $40 million worth of crypto assets. This attack was followed up by South Korea’s largest exchange by volume, Bithumb, being hacked for $31 million on June 20th.

Both of these exchanges have locked away their remaining funds in cold storage and have been working to recover and reimburse what was stolen to their users.

The post Korean Authorities Investigating Personal Data Security of Crypto Exchanges appeared first on UNHASHED.

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