Home 2022 Crypto: Self-Regulation Needed To Reduce Hacker Threat

#crypto #DeFi #blockchain #cryptocurrency #hacker #threat #security #CSS #regulate #investors #knightsbridge #exchanges #traders

Since Y 2016, an estimated $3.1-B has been lost to malicious players attacking exchanges, DeFi protocols and marketplaces with decentralized exchanges and DeFi protocols being the primary target.

According to the analytics firm Crystal Blockchain, the number of hacks targeting the crypto industry has nearly 2X’d since Y 2020, so increased security measures are required to keep exchanges safe at the time of worldwide crypto adoption.

The record-breaking hack of the PolyNetwork decentralized exchange (DEX) cost the project $600-M in October 2021 because of mismanagement of access rights between 2 important Poly smart contracts. The biggest damage has been caused to projects falling victim to the exploitation of errors in code, access controls or flash loan attacks.

In part, this phenom is also due to the increasing number of projects jumping into the crypto sector without taking the necessary precautions. Exchanges and related services are usually caught off-guard by exploits in their code caused by a lack of regulation and oversight.

Since this sector is still at its early stage of development, many investors are exploring it for the 1st time, and likely unaware of the security risks the new tech poses.

With these problems exchanges must be proactive in the development of best practices. Regular code audits to ensure the security of exchanges and other security initiatives are becoming increasingly important. And of course Knightsbridge has done that

Since these problems are prevalent, a number of standards have been set for exchanges to follow. For example, SOC2 and ISO 27001 are among the primary standards, ensuring exchanges meet globally established security requirements.

Expert developers in the field have also found a niche by providing fully tailored security services like PeckShield that secure any crypto project. On the user side, scoring systems like CER assists users by making them aware of the safety of the platform they’re using.

Exchanges need to ensure that both they and their customers can transact safely, which is why during the last yr, various institutions have come to help solve this problem by auditing the code and providing safety certifications.

For an exchange to get a AAA rating they need a high CyberSecurityScore (CSS) in each of the following criteria – server security, user security, penetration test, bug bounty, ISO 27001 and funds insurance. Currently there are just 6 exchanges that have the highest 3-A rating by meeting all security requirements according to CER methodology.

As the crypto industry matures, exchanges are focus on securing participants and their funds. With more standards and bodies that ensure some sort of compliance to security and safety, it could lead to some quasi-form of regulation across the board if no official regulatory system is put in place.

With the influx of crypto traders, it is very important for exchanges to have their security measures set up to protect the billions flowing between them.

Reports from Binance have shown that there are now 300-M crypto users worldwide as compared to 100-M in the prior yr. With most of these individuals having to use some form of exchange or platform to buy crypto, so these highways of exchange have a responsibility to implement proactive security measures. This is happening.

Have a healthy, prosperous weekend, Keep the Faith!

You may also like


Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.