South Korean authorities have checked security compliance at 21 crypto exchanges with only 7 of them successfully passed the inspection.
According to the news reports, the platforms were inspected by the Ministry of Science and ICT, the Korea Internet & Security Agency and the Ministry of Economy and Finance covering the period of September-December 2018. Specifically, the exchange operations were audited in line with 85 aspects in the security area. These aspects included management, administrative, system and operational security, wallet management. Moreover, the inspectors were interested whether the activities on the platforms are powered by data backups.
As a result, only a few exchanges managed to correspond to all requirements. These platforms are the following: Upbit, Bithumb, Gopax, Korbit, Coinone, Hanbitco and Huobi Korea.
At the same time, the authorities reportedly stated that the remaining exchanges have insufficient network security and thus are vulnerable to hacking. The names of the platforms have not been unveiled.
It is worth mentioning that there are some surveys saying that the majority of crypto trading platforms with daily trading over $1 million have the security problems.
The country faced heavy losses in the cryptocurrency market over the past 2018 year. In particular, Coinrail and Bithumb lost more than $40 million and $30 million respectively after the hacking.