Hyperithm, a crypto investment trust company in South Korea, acquired an Information Security Management System (ISMS) certification — a requirement Korean authorities say every virtual asset operating business must secure.
- Hyperithm is the first virtual asset brokerage in South Korea to be certified for information security by a public institution. Hyperithm’s announcement shows how crypto-related businesses — aside from trading exchanges — are proceeding to abide by government standards for better security and transparency of the virtual asset industry. Previously, crypto-custody service KODA (Korea Digital Assets) and virtual assets-only bank Sandbank had announced being certified.
- These crypto businesses underwent review under the Korea Internet & Security Agency (KISA) to receive the Information Security Management System (ISMS) certification. The ISMS certification proves that a business has prepared sufficient measures for information protection. For crypto businesses, ISMS is about investor protection from hacking. As blockchain-based systems build better security against hacking cryptocurrency directly, cyber-criminals could target the personal information of the investors. The ISMS certifies that crypto businesses have been thoroughly examined and have met the government standards for safeguarding the information of their users, such as security of the information system, encryption of personal information and confidentiality of executives and employees.
- Having the certification gives Hyperithm the green light to get registered with the Financial Intelligence Unit (FIU) of Korea as a legitimate virtual asset operator. In March this year, obtaining the ISMS certification was mandated among crypto businesses by the Financial Services Commission (FSC) under its new regulations, setting a Sept. 24 deadline and giving a six-month grace period. Any exchange or crypto dealing business that fails to obtain the certification by Sept. 24 faces the possibility of being shut down.