Recently, there has been a significant increase in the crypto world, whether it is the number of cryptocurrencies, crypto exchanges, the valuation of the cryptocurrencies, or the widespread security breaches and hacking.
NBC News reports that at least $10 million has been stolen from cryptocurrency exchanges in more than 20 hacks this year alone. And hackers stole more than $100 million in at least six cases. These are concerning figures given that over 12,000 cryptocurrencies are now traded on over 360 cryptocurrency exchanges.
These sorts of events cause panic and build doubt in the minds of investors. But it is also a fact that every financial institution, be it banks or crypto, has faced a cyber attack. So , we can say that it’s unfortunate but it’s equally normal.
As the crypto market is growing every day, higher crypto volumes need better handling and, hence, better security. We are sharing a handful of cryptocurrency exchange security guidelines that can maximize the safety of the exchange and its clients’ funds.
Two-factor authentication- Two-factor authentication must be made mandatory for all customers. Firstly, it adds an additional layer of security and, secondly, it negates the effect of malicious keyloggers and malware used by hackers through this added layer of security. One tap authenticators can make multi-factor authentication easy while staying tough to crack by hackers.
Account mapping to specific IP addresses- Though not very commonly used, this method can make things a lot easier. Exchanges can inform or notify the user in the event of any suspicious activity or when his account is logged in from an unfamiliar location or device. This can notify the user immediately if someone else is trying to gain access to his account.
Crypto exchange security audits: this is one of the ways organizations use to identify any loophole. In a similar way, crypto exchanges can schedule frequent audits of their cyber security measures to ensure their systems are updated and equipped with the latest security measures and no stone is left unturned. Read More – https://www.lcx.com/lcx-top-for-safety-and-security/
LCX as a regulated cryptocurrency exchange follows all these measures and makes sure that if this unfortunate event occurs, we have a solution for it to save the funds of the customers.
As a trusted technology service provider, LCX AG is regulated by the Financial Market Authority of Liechtenstein. Under the provisions of the TVTG, LCX AG is registered as a TT Exchange Service Provider, TT Token Depositary, Token Generator, TT Key Depositary, TT Price Service Provider, TT Identity Service Provider, TT Token Issuer for our own name (Article 12(2) TVTG), and TT Token Issuer for third parties (Article 12(1) TVTG).
LCX’s due diligence compliance requirements are on par with those of a bank or other financial institution, and they are already aligned with the new European Commission’s Regulation of Markets in Crypto-assets (MiCA) and US FATF crypto regulations. The Liechtenstein regulator oversees LCX’s compliance policies and practices.
Though the list can continue, like adding an anti-fraud department or blocking withdrawals for some time whenever account information is changed, these measures can strengthen the security of crypto exchanges and minimize the chances of a security breach or hack. Inculcating them in their system will also make them reliable and trustable among customers.
