Upbit, the top South Korean cryptocurrency exchange by trade volume (according to data from CoinMarketCap), was recently granted an information security management system (ISMS) license from the Korea Internet and Security Agency (KISA), a sub-organization of the Ministry of Science and ICT. The certification denotes the exchange's adherence to the country's compliance and security standards.
Upbit is reportedly the first South Korean crypto exchange to be awarded this license, although other exchanges are expected to file for ISMS certification with the KISA. Applicants are evaluated based on 104 criteria containing 253 sub-items.
Applying for ISMS licensure is not necessarily optional. Due to December 2017 recommendations from the Ministry of Science and ICT, all internet-related businesses in South Korea that earn more than $100 million in annual revenue (or that receive over one million daily visitors, on average, in a three-month period) must acquire ISMS certification.
The security of crypto exchanges has been a salient topic within South Korea lately. In mid-July, for example, the country's legislature debated the subject when it considered several bills to establish a crypto-focused regulatory framework. Further, the country is no stranger to regulation, as the KISA began conducting security inspections of exchanges in response to the recent wave of hacks, such as to Bithumb, which lost approximately $31.5 million in a June attack, and to Coinrail, which reportedly lost over $35 million worth of digital assets.
Translations by Google.