Moscow-based cybersecurity firm Group-IB has published a research ranking the security of major cryptocurrency exchanges.
The research, conducted in partnership with crypto insurance platform CryptoIns, is meant to help insurers evaluate and assess the risks associated with a crypto insurance policy. To determine the insurance premiums required to adequately cover cryptocurrency kept on major exchanges, the cybersecurity firm developed an assessment system, which weighs criteria such as the level of technical security, the reliability of key storage, passwords, and personal data of customers. The system also considers the quality of the individual risk management systems of exchanges, and how rigid the know-your-customer (KYC) and anti-money-laundering (AML) procedures.
Group-IB divided the crypto exchanges into four groups based on their security features. Crypto exchange Kraken, the only exchange listed in the first group, received the highest rating with 1.25 percent insurance rate. The second group included Bittrex and Coinbase Pro, with a 1.5 percent insurance premium protection. The third group, at a 1.9 percent insurance premiums, includes crypto exchanges Binance, Bitifinex, Bithumb, Bitmex, Localbitcoins, MyEtherWallet and Poloniex. The bottom group of least secure exchanges included OKEx, Huobi Pro, Coincheck, Bitstamp, Bit-Z, Zaif.
“In the first place, we assess how crypto exchanges deal with crypto and fiat assets: what are the exchanges assets keys’ storage and management procedures,” a Group-IB spokesperson said in a statement. “In some cases, with founders’ consent, the assessment includes penetration testing using social engineering methods aimed at the network compromise through the most vulnerable link at any organization – humans.”
Group-IB and CryptoIns have not released the exact metrics made when labelling exchanges too risky to insure, stating that such information is confidential.
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