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, it 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.”
Cheng was reacting to the 44-page paper by CryptoCompare for its November 2018 Exchange Review using data from 130 digital currency exchanges over the course of last month, that shows only one-third of digital currency exchanges store a significant volume of their users’ coins in cold wallets, and that 14% of t...
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