Association Criticized for Poor Screening

Following the KBA’s announcement, some industry participants pointed out major flaws in the inspection.

12 Korean Crypto Exchanges Pass Self-Regulatory Probe but Inspector Under FireThe association has come “under fire for poor screening of cryptocurrency exchanges,” the Korea Times wrote, emphasizing that “the KBA even extended its one-month inspection to two months to allow sufficient time for underprepared exchanges, inviting criticism for carrying out an inspection in name only.”

Furthermore, “It is pointed out that even though hacking incidents at virtual currency trading sites have occurred recently, all trading sites have passed the screening,” Money Today wrote, suggesting that the inspection was ineffective. Last month, Coinrail and Bithumb were hacked.

The news outlet quoted an industry source asserting, “it is doubtful that all of them have passed [the inspection],” noting that “the fact that the scores of the detailed evaluation items are not disclosed for each trading site is also a cause of doubt in the examination results.” The Korea Times elaborated: