Well-known cybersecurity firm Group-IB has ranked the security of top cryptocurrency exchanges, as per the statement released by U.S.-based tech news media the Next Web on Tuesday, Nov. 6.
The Kraken platform is the safest cryptocurrency exchange, as per the research orchestrated by the Moscow-based firm in association with cryptocurrency and digital asset insurance platform CryptoIns. Notably, the now-second cryptocurrency exchange by daily trade volume, OKEx is among the riskiest exchanges to trade on. Moreover, Huobi Pro, as well as CoinCheck, are also included in the riskiest cryptocurrency trading spots, as per the report.
Group-IB made its determinations, according to the Next Web, with a recently developed evaluation system with the purpose of calculating insurance premiums to cover digital assets and cryptocurrencies held by chief exchanges.
It is to be noted that CryptoIns is supported by ASPIS S, which is a Swiss insurance broker. CryptoIns is now offering its insurance services to a number of key cryptocurrency exchanges. The latest insurance policy allegedly covers losses from cyber-attacks on exchange software, theft, fraud and illegal actions of cryptocurrency exchange personnel.
The risk evaluation for cryptocurrency exchanges takes into account several factors such as the reliability of basic storage, technical security levels, passwords, as well as personal data of clients. The framework also takes into account risk management, as well as Know Your Customer and Anti-Money Laundering policies.
Group-IB and CryptoIns have not released the clear-cut metrics used when shaping the security of an exchange, supposedly in the interests of maintaining privacy.
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.
Several cryptocurrency exchanges, like International Digital Currency Markets (IDCM), are utilizing the latest technologies like artificial intelligence (AI) in order to facilitate its security efforts. They also make use of technology which incessantly monitors its network for mistrustful conduct.