Cybersecurity Experts Compiled a Rating of the Reliability of Cryptocurrency Exchanges

Cybersecurity Experts Compiled a Rating of the Reliability of Cryptocurrency Exchanges

Information security company Group-IB, together with CryptoIns IT-platform, has published a rating of the leading Bitcoin exchanges on the insurance and security of funds stored on them.

All exchanges were divided into four groups, depending on the risk. The first group includes the most reliable, while the fourth – the least reliable.

Criteria for determining the degree of insurance risk include the level of technical security of the exchange, the reliability of storing keys, passwords and personal data of users. The quality of individual risk management systems and the platforms’ compliance with anti-money laundering (AML). Customer verification (KYC) procedures were also taken into account.

“In the first place, we assess how crypto exchanges deal with crypto and fiat assets: what are the exchange’s assets keys’ storage and management procedures. 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,” a Group-IB spokesperson.

The Group-IB experts attributed only Kraken with an insurance premium of 1.25% to the group of the most reliable exchanges in this regard. This means that insurance of 1 BTC for a 90-day period will cost 0.0125 BTC.

Bittrex and Coinbase follow with 1.5%. The third group included Binance, Bitfinex, Bithumb, BitMEX, LocalBitcoins, MyEtherWallet and Poloniex – the insurance premium of these exchanges is 1.9%.

It is noteworthy that OKex, the second in the world in daily trading volume, along with Huobi and Coincheck is included in the list of unreliable assets in terms of insurance.

The least reliable is the YoBit exchange. Also, the list did not include the exchanges: Zaif, Bitstamp, TopBTC, and Bit-Z.

As the TheNextWeb notes, representatives of Group-IB and CryptoIns refused to disclose the criteria by which certain exchanges were included in the list of the least reliable, citing the confidentiality of information.

Earlier this week, Group-IB announced the development of a cyber risk insurance program for cryptocurrency exchange customers.

In October, the company’s specialists presented the results of a study, according to which over the past year and a half, hackers stole more than $880 million from exchanges.

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