Korbit Enhances Internal Controls for Customer Asset Protection

On June 18, Korbit, a virtual asset exchange, announced that it is enhancing its internal controls to ensure the safe custody of customer assets.

Currently, in accordance with the User Protection Act, Korbit deposits more than 100% of users' Korean won deposits in banks. At the end of each month, the company undergoes on-site inspections by banks, and at the end of each quarter, external audits by accounting firms to regularly verify whether it is fulfilling its obligations for segregated custody and deposits.

In addition, Korbit stores more than 80% of the Korean won-converted value of customer virtual assets in cold wallets, which are monitored daily. Cold wallets are kept in physically separated spaces with no internet connection. The authentication procedures required for virtual asset transfers are also conducted offline. This process is controlled so that transfers can only be executed with joint signatures from multiple authorized approvers.

This internal control system has also been recognized objectively. Korbit has obtained the SOC 1 report, a global certification for financial internal controls. The company is continuously improving its operational procedures related to wallet security. Since becoming the first in Korea to disclose its virtual asset holdings in 2022, Korbit has published, on a daily basis, the amount of assets in circulation (customer deposits) and the quantity of assets held by the exchange, including wallet addresses, on its website.

Korbit has also strengthened internal controls for its employees in accordance with best practices for virtual asset trading support. Following the implementation of the common guidelines for trading support reviews (Best Practices for Virtual Asset Trading Support) in July of last year, the company conducted an internal audit to review its operational status and propose improvement measures. To further strengthen internal controls for employees involved in trading support operations, Korbit has introduced a system requiring account reporting?including accounts at other exchanges?and conducts regular reviews of transaction histories as part of enhanced management procedures.

A Korbit representative stated, "Following the recent extended system inspection, we are further advancing our system stability and internal control framework," adding, "We will continue to strengthen technical and managerial measures, prioritizing the safe custody of customer assets and the provision of a convenient trading environment."