Digital currency exchange Coinbase insists that its cybersecurity program is state-of-the-art, saying it is committed to complying with the newly enacted New York cybersecurity regulations.
Coinbase made the statement in response to the special questionnaire sent last month by New York Attorney General Eric Schneiderman to 13 cryptocurrency exchanges in the state. It was part of his Virtual Markets Integrity Initiative (VMII), which aims to look into the privacy and transparency policies of crypto exchange operators.
The company said in its response:
“We have established a cybersecurity program and related policies and training, conduct periodic penetration testing and vulnerability assessments, and undertake security risk assessments among myriad other operational and technical safeguards. We operate an active bug bounty program to pay third-party developers for vulnerability tips. We will continue to invest aggressively in industry-leading technology and practices to secure customers’ data and virtual currency assets, even as our investment and commitment to security go far beyond what the law requires.”
For its customer support program, Coinbase continues to conduct team training and quality assessment in addition to investing in a full-time global tiered coverage in multiple regions, live multi-language support and improved FAQ, the company said.
With regard to platform reliability, Coinbase said it had invested heavily to improve its technical backend and system stability.
It added:
“Despite the extremely competitive demand for experienced, technical engineering employees, we have more than doubled the size of our full-time employee engineering team in the past year, including the addition of senior personnel to our teams supporting infrastructure, site reliability, and payments operations. Our professionals have worked hard to achieve greater efficiencies in database management, improved caching to reduce the load on our databases, an overhaul of our APIs, and substantial re-architecting of our code base.”
Going forward, Coinbase believes that enhanced cooperation with regulators, policy makers, and enforcement agencies is vital to establishing trust. It said it “looks forward to cooperating further with the OAG's initiative and assisting policy makers and regulators” in shaping a responsibly regulated cryptocurrency marketplace.
In mid-April, Schneiderman sent questionnaires to the crypto exchanges to find out about their policies on money laundering and internal controls.
Part of his letter read:
“With cryptocurrency on the rise, consumers in New York and across the country have a right to transparency and accountability when they invest their money. Yet too often, consumers don’t have the basic facts they need to assess the fairness, integrity, and security of these trading platforms. Our Virtual Markets Integrity Initiative sets out to change that, promoting the accountability and transparency in the virtual currency marketplace that investors and consumers deserve.”
This article appeared first on Cryptovest
