Korbit Enhances Internal Control System… "Top Priority on Protecting Customer Assets"

On the 18th, cryptocurrency exchange Korbit announced that it is enhancing its internal controls to securely safeguard customer assets.

Currently, in accordance with the User Protection Act, Korbit deposits 100% or more of users' KRW deposits in a bank. At the end of each month, an on-site inspection is conducted by the bank, and at the end of each quarter, an external audit by an accounting firm is carried out to regularly check compliance with the segregation and deposit requirements.

In addition, Korbit keeps at least 80% of customers' virtual asset value (KRW equivalent) in cold wallets, which are monitored daily. Cold wallets are stored in a physically separated space isolated from the internet, and the authentication process required for transferring virtual assets is also conducted offline. This process is controlled so that transfers are only possible if multiple authorized approvers jointly sign.

Along with obtaining the global SOC 1 report for financial internal controls, Korbit is continuously improving its wallet security operating procedures.

Internal controls for employees have also been strengthened. In line with the Common Guidelines for Transaction Support Review (Best Practice for Virtual Asset Transaction Support) implemented in July last year, Korbit conducted a self-inspection of its operations and proposed improvement plans. To reinforce internal control for employees involved in transaction support, management procedures have been strengthened through the introduction of an account reporting system, including at other exchanges, and periodic transaction record checks.

A Korbit official stated, "Based on the recent extended inspection, we are further enhancing system stability and internal control frameworks," and added, "We will prioritize secure custody of customer assets and a convenient trading environment by continuously strengthening technical and managerial measures."