The hacking of Cryptopia has raised several questions as regards the security measures employed by crypto exchanges across the globe. In light of this, Cryptocurrency Exchange Ratings (CER) team put out a report documenting its assessment of the security measure put in place by the top-100 exchanges by trading volumes.
In order to ensure adequate security of their funds, traders have shifted their attention to popular and well-established exchanges such as Binance.
However, this may not hold true for some top ranking and popular exchanges such as Bithumb and coincheck. According to a recent report put out by the Cryptocurrency Exchange Ratings (CER) team, documenting its assessment of the security measure put in place by the top-100 exchanges by trading volumes it is clear that being popular isn’t always easy to maintain your position.
The Cryptocurrency Exchange Ratings (CER) Report
CER graded the security measure employed by these exchanges based on three criteria and on a scale of 1-10 [their Cyber Security Score (CSS)]. The CER team employed a popular intensive assessment model for security audits. The research team took the following criteria into considerations while rating each exchange:
2. User Security
3. Ongoing Crowdsource Security Assessment [OCSA]
The CER research also reported that hackers stole a total of $1.3 billion from cryptocurrency exchanges last year alone. So far, 2019’s only hack attack is that of Cryptopia. An estimate of 3.6 million in Ethereum and CENNZ tokens was reported stolen in Cryptopia’s hack.
The CER, upon the completion of its research, has released a rating score sheet containing each exchanges’ Cyber Security Score (CSS). Out of the 100 rated, only nine scored above eight points out of ten. The leader is Kraken, with a score of 9.06. Kraken is followed by Coinbase Pro, Binance and BitMEX with 8.74, 8.50, and 8.50 points respectively. Surprisingly, popular crypto exchanges such as Bithumb, DOBI, Zaif performed woefully.
Coincheck Performed Badly Despite Just Getting Certified
Japan’s financial regulator recently approved Coincheck but now the exchange it is one of the last two on the list.
This is contrary to a recent report from Japan financial regulator, making it known that it has conducted an extensive examination on Coincheck before giving it the go-ahead to operate.