Russian cybersecurity firm Group-IB has graded top crypto exchanges by their security in order to value risk insurance.
According to research conducted by the Moscow-based firm in partnership with crypto asset insurance platform CryptoIns, the Kraken platform is the safest crypto exchange. In contrast, OKEx — the now-second crypto exchange by daily trade volume — as well as Huobi Pro and CoinCheck are the riskiest crypto trading spots, the report says.
Per the Next Web, Group-IB made its determinations with a newly developed assessment system that calculates insurance premiums to cover cryptocurrencies held by major exchanges.
CryptoIns, which is supported by Swiss insurance broker ASPIS S, is now offering its insurance services to dozens of major crypto exchanges. The new insurance policy purportedly covers losses from “cyber-attacks on exchange software, theft, fraud and illegal actions of crypto exchange personnel.”
The risk assessment for crypto exchanges takes into account factors such as technical security levels, the reliability of basic storage, passwords, as well as clients’ personal data. The framework also considers risk management, as well as Know Your Customer (KYC) and Anti-Money Laundering (AML) policies.
Group-IB and CryptoIns have not released the precise metrics used when determining the security of an exchange, reportedly in the interests of maintaining confidentiality.
The issue of security on exchanges becomes increasingly important for adoption as more institutional players enter the space. As Cointelegraph previously reported, 31 crypto exchanges have been hacked over the last eight years — with an estimated $1.3 billion stolen.
Some crypto exchanges, like International Digital Currency Markets (IDCM) are using new technology like artificial intelligence (AI) to help its security efforts — and use technology which continuously monitors its network for suspicious activities.
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Author: Helen Partz