Five cryptocurrency exchanges in South Korea have inflated their liability to users in line with demands from regulators. Native English-language news outlet The Korea Herald reported the news on June 17.

A year after the fair Trade Commission requested Bithumb and 4 different platforms to adapt their policy, the businesses will currently hold themselves responsible within the event of user funds being stolen.

The worry for paying out can lie with the exchanges even if no wilful or gross negligence occurred on their half, The Korea Herald stated.

Previously, exchanges solely reimbursed users if it had been tried that their own systems were guilty.

The changes are pertinent for the domestic exchange sector, with Bithumb among those that suffered hacks of user funds over the past year.

As Top Market Group reported, increasing security for South Korean platforms is additionally necessary because of the increased risk of cyberattacks from neighboring North Korea.

Late last month, a phishing scam targeting users of South Korean exchange Upbit perceived to be the work of North Korean state actors.

At the same time, several South Korean exchanges were coverage gross losses for 2018 because the cryptocurrency market took hold, with data showing solely Upbit creating a profit. Coinnest, another exchange, shut down altogether in may.

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