South Korean Crypto Exchanges Change Terms of Service

Asia Blockchain Review
July 7, 2019

Five cryptocurrency exchanges in South Korea have formally revised their terms of service to make them liable for issues caused by potential cyberattacks or system malfunctions that may affect users, regardless of whether operators were willfully or grossly negligent.

As reported by The Korea Herald, Bithumb and four other crypto exchanges made the changes after receiving corrective recommendations from the Fair Trade Commission (FTC) in April 2018. They were also encouraged by the Korea Blockchain Association to establish a better system for addressing security breaches.

Ensuring a Secure Environment for Crypto Investors

In their previous terms of service, the exchanges explicitly stated that they would not be held liable for losses suffered by investors in the absence of willful or gross negligence. Bithumb alone lost 35 billion won (US$31.5 million) worth of cryptocurrencies in a cyberattack in June 2018.

Given that crypto exchanges prefer to maintain a reserve of digital assets equivalent to the amount stored in a hot wallet, major exchanges are typically able to cover breaches costing of tens of millions of dollars using corporate funds. Nevertheless, a guarantee that investors are safeguarded against potential cyberattacks would facilitate a more secure environment for investors.

Crypto Groups are Working to Respond to Cyberattacks

Jeon Ha-jin, chairman of South Korea Blockchain Association, noted that various crypto-related organizations and firms started working to establish a system in response to cyberattacks because exchanges will continue to be targeted in the long-term.  

CCN Markets expects public perception of the crypto exchange market to improve with the development of insurance, a practical regulatory framework and a guarantee for investors regarding the safety of their funds. 

About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Blockchain Enables Verification of COVID-19 Immunity
    Given the virus is not going to disappear in a hurry and we are some time away from vaccinating the ...

    November 21, 2020

    Illicit Cryptocurrency Activity: A Concern
    Market regulators such as SEC has accepted cryptocurrencies as a financial instrument and are consta...

    November 20, 2020

    IBM Using Blockchain to Help Businesses Reopen during COVID-19
    IBM’s healthcare unit, IBM Watson recently announced that they will soon be launching an app to supp...

    November 20, 2020

    Canadian Pacific Railway Collaborates with TradeLens
    Canadian Pacific Railway recently collaborated with TradeLens in a bid to improve its efficacy as an...

    November 19, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us