Korbit, Coinone, Upbit, Coinplug, RippleForYou, Coinpia and other received fines from the South Korea Communications Commission (KCSC) ranging in size from $ 10,000 to $ 100,000. In total, fines were issued to eight crypto-exchanges for a total of 140 million won ($ 131600). This is reported by CCN.
The reason was weak security systems that violate the rights of users and put their personal data at risk.
While daily trading volumes and the number of users of cryptocurrency exchanges are increasing exponentially, local trading platforms have implemented extremely poor security measures. Basic measures including access control device installation and operation, storage of user passwords, and protection of users were integrated poorly.
South Korea Communications Commission
Out of the 10 cryptocurrency exchanges that were investigated by the five Korean ministries, eight were found to be in violation of the Information and Communication Network Act, and to have implemented poor security measures.