• South Korea issues the first crypto-trust company with a security certificate

  • If a company wants to succeed in the current legal environment surrounding the cryptocurrency industry, regulation and compliance are the name of the game. As a result, many businesses around the world are increasing their efforts at both self-regulation and rule compliance in order to stay in the good graces of the law.

    With that goal in mind, a crypto-trust company recently became the first to be certified in South Korea.

    According to website updates, Hyperithm, a South Korean asset brokerage firm, is the first of its kind to receive an Information Security Management System (ISMS) certification. Even though it is the first crypto-trust company to be certified for information security by a public institution, it clearly demonstrates the shift in regulatory focus away from exchanges and toward other crypto-related businesses.

    Previously, KODA (Korea Digital Assets) and Sandbank, a virtual assets-only bank, had received ISMS certification. Businesses must submit to a review conducted by the Korea Internet & Security Agency in order to do so (KISA).

    It demonstrates that a company has taken appropriate information-security measures. In the case of cryptocurrency, this investor protection is aimed at hacking, as hackers may target investors’ personal information in order to extract profits.

    In any case, all crypto-related businesses in the country must obtain this certification by the end of the month. It was mandated by Korea’s Financial Intelligence Unit (FIU) in March of this year as a prerequisite for license authorization, with a deadline of September 24.

    After obtaining the certificate, Hyperithm can now register as a legitimate virtual asset operator with the FIU of South Korea.

    What's your reaction?