In line with a ‘recent report‘ by native reported media ‘The Korea Herald’, renowned five ‘cryptocurrency‘ exchanges within South Korea have increased their liability to the users as per their demands from regulators.
A year after the ‘Fair Trade Commission’ asked Bithumb and 4 alternative platforms to adapt their policy, the businesses will now hold themselves responsible within the event of user funds being hacked.
The responsibility for paying out will lie the exchanges although no willful or gross negligence occurred on their behalf, the reporting media added.
Earlier also, exchanges solely reimbursed users if it was proven that their own systems were found guilty.
The amendments are pertinent for the domestic exchange sector, with Bithumb exchange among those that suffered hacks of user funds over the past year.
As ‘reported‘ earlier, increasing security for South Korean platforms is additionally very necessary due to the accumulated risk of cyberattacks from neighbouring country ‘North Korea’.
Just last month, a phishing scam targeting users of South Korean exchange named ‘Upbit’ gave the impression to be the work of North Korean state actors.
At the same time, several South Korean exchanges were reporting gross losses for the last year as the ‘cryptocurrency‘ bearish market took hold, with data showing solely Upbit, able to make some profits. On the other hand, Coinnest exchange ‘closed‘ its operations earlier in the month of May.