KISA analysis: Korean exchanges seem irresponsible with passwords & private keys

17 Aug, 2018
by Paula D. Baciu
KISA analysis: Korean exchanges seem irresponsible with passwords & private keys

An interim analysis conducted by South Korea’s Ministry of Science and IT concluded that local crypto exchanges present substantial security vulnerabilities. Furthermore, the most critical issues found were related to password and wallet information storage, according to a report on Token Post.

The South Korean government is currently reviewing the digital assets industry in order to assess the needs of the market in terms of legislation.

The Korea Internet and Security Agency (KISA) evaluated a total of 21 licensed exchanges, including UpBit and Bithumb. The analysis checked each one of them against a set of 17 elements concerning security measures.

Most of the exchanges disregarded Korean regulations concerning the trade of digital assets and failed on 11 levels measured by the assessment. Six of them require very little implementation effort.

The main issues were related to the absence of abnormal behavior monitoring systems, cryptographic private key storage, password security management system. Some of them featured no security system.

The government urged exchanges to work on the issues found by September 2018. UpBit, Bithumb and Coinone number among the safest exchanges assessed by them.

Improving the security of the cryptocurrency industry is decidedly a priority for the Korean government, particularly in light of the recent hacks that affected thousands of users. “We are planning to support the improvement of the security level by continuously checking large exchanges,” the information policy officer of the Ministry of Finance and Economy declared.

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