Singapore Crypto Exchange Head Calls For Stronger Security
A cryptocurrency exchange operator is pushing for a more stringent standard in the digital currency exchange industry in response to research showing some exchanges are exposed to security concerns.
A Singapore-based digital currency exchange operator is calling for stricter standards in the cryptocurrency exchange space after a new study showed security remains a significant concern in the virtual currency space and that many trading venues still lack the essential elements to provide adequate protection to users as well as investors.
In an interview with Cryptovest, ABCC CEO Calvin Cheng said although the outlook seems alarming, the situation may be less disconcerting in real life.
“There is a study showing numbers that are not weighed by exchange volume,” Cheng said. “It said that although there are numerous poorly-secured crypto exchange venues, they only account for a small fraction of the trading volume. Looking at the industry figures, exchanges with strong security still account for a much higher transaction volume. Security has always been a top priority and fundamental of ABCC.”
According to the review, a minority of these exchanges do not inform their users how their data would be used or what rights they are surrendering when using their platforms. Another 11% of these digital exchanges "have been hacked in the past," it added.
CryptoCompare’s Aggregate Pricing Index (CCCAGG) added there are other security concerns as well, as it noted that “less than half of top exchanges impose strict KYC (know-your-client) requirements, while just under a third do not impose KYC requirements.” But it admitted that KYC is not a 100% guarantee [of] security concerns of users’ accounts, as well as the strict identification requirement might have a damaging effect against hacking attacks.
Cheng explained that his company is putting significant effort into providing safety features for users and protecting investors by improving both infrastructure and asset investments.
“We are carefully adding more quality projects to enrich investment opportunities, such a new Daily Options. On the infrastructure side, we continue working with security companies on the latest technology and practices. Our team also has some top developers from Ant Financial that are very experienced,” he added.
ABCC said it believes cryptocurrency users could strongly benefit from its use as the prices of digital assets stabilize. In addition, the exchange is set to sign a partnership deal with Simplex and bridge fiat and cryptocurrency to allow users to use credit cards to purchase digital assets in Euro and USD.
Cheng’s optimism runs contrary to the prediction of Bloomberg analyst Mike McGlone that Bitcoin prices might crash to $1,500 – a much more pessimistic forecast than most.
He said, “Bitcoin is caught in a strong selling trend. [This trend] is its most pronounced since the sell-off it underwent mid-year, when the price tumbled from about $9,300 in May to around $6,600 in July, according to the Directional Movement Index. I too believe that Bitcoin will plunge to $1,500. But Bitcoin is only one cryptocurrency. It doesn’t represent all cryptocurrencies. The future of cryptocurrencies will be in the tokenization of assets. Fundamentals will be important.”
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