According to local news portals in South Korea that ran the following news on 17 June, five cryptocurrency platforms have now taken on full responsibility of any losses that their users might suffer, including service issues and potential hacks.
Updates in the Terms and Conditions
In addition to this, the exchanges will also be accountable to pay out their users even if no disregard occurred on their part, countering the previous T&C which stated that they would not compensate the loss if found not guilty.
Last year, we witnessed the Fair Trade Commission urging Bithumb and four other crypto exchange platforms to tweak their policy, and now, the responsibilities have doubled for exchanges with this new addition.
As reported in March 2019, the latest South Korean crypto exchange to be hacked, Bithumb, was attacked twice last year, giving way to a loss of cryptocurrencies worth $31 million (approximately). So, as per the latest reports, Bithumb is topping the list of these five platforms presently in question.
By the looks of it, the changes seem permanent as of now, with Bithumb actively backing this new protocol since it has suffered hacks quite a lot in the past year.
Measures are being taken by the government as well, though in subtle and long term ways. The South Korean government has also come forward to fund a blockchain regulation study group recently.
We also witnessed the government taking immediate action to combat the growth of cryptocurrency related crimes by assigning a special task force to explicitly look into such frauds and corruption and also handling them to the best of their ability.
Let’s hope that with all these measures, including the addition of this new initiative, the increasing cybercrime in the South Korean crypto-verse goes downhill.