54% of Cryptocurrency Exchanges Have Security Holes

Exchanges

Merchants hope and count on the trade they’re buying and selling on takes safety severely. However whereas all crypto platforms pay lip service to good cybersecurity practices, many fail at even essentially the most fundamental measures reminiscent of imposing robust passwords. New analysis has discovered 54% of all cryptocurrency exchanges have poor safety in at the least one space, leaving them and their customers susceptible to assault.

Additionally learn: Japanese Regulators Urgently Reply to Zaif’s Hack

Regardless of Lots of of Thousands and thousands of in Hacks, Many Exchanges Nonetheless Have Shoddy Security

The cryptocurrency panorama has modified considerably since Bitcoin’s earliest days, however one factor that’s remained fixed is trade breaches. From the Mt Gox days to final month’s Zaif hack, exchanges have been repeatedly surrendering their funds, regardless of the rising worth of crypto belongings incentivizing them to up their opsec. An in depth new report from ICO Ranking has revealed the extent of the lax safety practices that pervade many exchanges, together with a number of supposedly top-tier platforms.

The ICO itemizing and evaluation website profiled 100 exchanges whose every day quantity exceeds $1 million and located most of them wanting in a number of areas. For instance:

  • 41% of exchanges permit passwords with fewer than eight symbols
  • 37% of exchanges permit passwords with both digits or letters alone
  • 5% of exchanges permit the creation of accounts with out e mail verification
  • three% of exchanges lack 2FA
  • Solely 46% of exchanges meet all 4 parameters
  • Simply four% of Exchanges Have been Discovered to Have Finest Apply for Area Security

ICO Ranking additionally thought of registrar and area safety. Particularly, it seemed for issues reminiscent of a registry lock, stopping unauthorized adjustments to the area registry, and DNSSEC, to forestall DNS cache poisoning, which has been an assault vector beforehand used to focus on platforms like Myetherwallet. Its findings had been as follows:

  • Solely 2% of exchanges use registry lock
  • Solely 10% of exchanges use DNSSEC
  • Solely four % of exchanges use finest observe in four out of 5 of these areas

Coinbase and Kraken Rating the Highest – Okcoin the Lowest

ICO Ranking concludes by publishing a desk ranking all 100 exchanges profiled in line with their aggregated safety rating. No trade manages to attain 90% or increased however Coinbase comes the closest, at 89/100, adopted by Kraken at 80 after which Bitmex and Gopax in joint third (78). Different notable entries on the listing are Cobinhood (eighth), Ethfinex (12th), Bittrex (13th) and Binance (17th).

54% of Cryptocurrency Exchanges Have Security Holes
The highest 10 exchanges for safety in line with ICO Ranking

Backside of the listing is Okcoin.cn, which scores simply 15/100. Different noteworthy exchanges that rating poorly are Mercatox (25/100), the hacked Zaif (29/100), and Bithumb (34/100). Whereas earlier makes an attempt have been made at ranking the safety practices of cryptocurrency exchanges, ICO Ranking’s report is essentially the most detailed but. It’s not complete, for it doesn’t element such issues as dynamic IP verification, withdrawal checks, and different safety measures. However, it gives a snapshot of the well being of crypto exchanges and reveals there’s room for enchancment throughout the board.

Which cryptocurrency exchanges do you assume undergo from lax safety? Tell us within the feedback part under.


Photos courtesy of Shutterstock, and ICO Ranking.


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About Tom Greenly

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