Upbit is the largest cryptocurrency exchange in South Korea based on volume. Now it is the very first one to obtain ISMS license.
In December of 2017 we saw KISA saying that absolutely all data and internet related companies that generate over $100 million need to hold an ISMS license. The assessment was made based on 100 criteria, with the purpose of guaranteeing really strong security protocols and management systems.
Because of the fact that Upbit was approved, license fillings will most likely be needed for the fellow country exchanges like Coinone, Korbit and Bithumb.
Whenever talking about cryptocurrency exchanges, security is vital. The problem is that in South Korea this is a huge problem. The measures that were implemented by the trading platforms were inadequate so the government decided to step in. Commercial banking services were temporarily suspended.
According to KISA, in South Korea just a few cryptocurrency exchanges had the internal management systems needed. The agency declared:
There still exists many cryptocurrency exchanges with subpar security systems and as such, investors are cautioned in investing through unrecognized platforms. The government will continue to monitor and evaluate cryptocurrency exchanges to improve the standard of security employed by trading platforms.
Because of the ISMS license, other cryptocurrency exchanges implemented modifications like AML (anti-money laundering) and KYC (know your customer). Trading was actually suspended by Bithumb for one month in order to update the infrastructure used.
Upbit’s parent company CEO, Lee Seok-wu, declared:
Since early 2018, Upbit has been working tirelessly to improve the platform’s internal management system and security measures to obtain the ISMS license. With top class security experts and tested security systems, the company will continue to create a safe trading environment and protect the data of its investors.
The current South Korean cryptocurrency market is highly active. It can easily heat up and cool down. With this in mind, the proactive measures implemented by the government will surely strengthen infrastructure, leading to a lot of help to deal with various possible unexpected future scenarios.