The long awaited maturing of the cryptocurrency exchanges is happening not because of regulatory measures, but because of commercial pressure…:
[…] Various investor surveys continually point to security as one of the major – if not the top – concerns holding back investor appetite in cryptos. So what are exchanges doing to prevent major security breaches from happening again?
The Binance hack took the all-time total stolen from cryptocurrency exchanges past the $1.35-billion mark, according to research by The Block consultancy. Approximately 59 per cent of this total was taken in 2018 alone.
Jonny Emmanuel, partner at law firm Bird & Bird, explains that targets have moved beyond the big exchanges, with smaller exchanges now being targeted.
Moscow-based Group-IB, which undertakes risk assessment for crypto exchanges, says cybersecurity factors to be taken into account include technical security levels, the reliability of basic storage, passwords, clients’ personal data, as well as know your customer (KYC) and anti-money laundering (AML) policies.
Nevertheless, according to Mr Emmanuel, “robust internal procedures are the most critical element. A lot of hacks of hot wallets [online] have occurred either because of compromised login credentials or an inside job.”