According to a local news outlet, Chosun, the Korea Communications Commission (KCC) and the Korea Internet & Security Agency (KISA) have announced a joint probe into the way crypto exchange operators handle personal data.
The two agencies have mentioned that they will probe into any kind of potential infringements of data privacy rights in the hands of crypto exchange operations along with third party service providers. For instance, they will investigate smartphone apps that are designed for services such as travel, shopping, and real estate.
In their investigation, they are planning to check the status of administrative and technical protection measures pertaining to the personal data of users. This will exclusively cover anti-tampering measures, data access control measures, malware protection, and personal data encryption.
The two authorities mentioned that they will enforce administrative penalties if they come across any kind of violation of the country’s data protection laws. They plan to review the usage, collection, provision and destruction of personal data by third parties as well as crypto exchange operators.
Eight crypto money handling firms had violated Korea’s Personal Information Protection Act in 2017. KCC now plans to probe these eight firms as they had received corrective orders post this violation. Citing a local source, Chosun further reported that the impetus for this new probe is the recent hacks of domestic crypto exchanges.
The probe will include the $17 million hack of major Korean exchange, Bithumb last month. KISA has been investigating the causes of this hack in collaboration with other agencies. Earlier, Bithumb had given the go ahead, after carrying out a three month long investigation pertaining to its operations.
The entire spring this year, the Korean exchanges had to deal with increasing scrutiny from regulators with regards to their compliance with fraud prevention measures and anti money laundering standards. In this week, a set of revised AML guidelines has been released by the Korean Financial Services Commission (FSC) pertaining to virtual currencies.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]