South Korea Imposes ~$55,000 Fines On a Crypto Operator for Security Failures
An operator of Bithumb, BTC Korea.com, was reportedly fined for leaking the data of its users. They allegedly stored the data without encrypting it, and according to reports, their anti-virus software was not updated as well. Due to this loophole, perhaps, the confidential information of the users on this exchange was hacked.
The Korea Communications Commission fined the operator. The fine imposed was reportedly a total of 60 million won on BTC Korea.com, that is, $54,970.
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Once again, South Korea imposes fines and consequences for a data breach. And once again, it is imposed within months or a year of the incident. Contrast that to what happens here in the U.S.
How often do federal regulators fine an entity for a breach in a timely fashion? I’ve seen some state attorneys general do it, but federal? I’m hard-pressed to think of any. Is is because our federal regulations are written in ways that make determinations of violation more difficult and time-consuming, or is it because of more due process provisions that give entities a greater chance and opportunities to defend themselves from charges of violations? Whatever it is, I am reminded of advice given to puppy owners and parents of young children: if your consequences are delayed, they won’t be effective. The same might apply here, no?