Cryptocurrency users were treated to another scandal at the end of August, as leading exchange Binance revealed that a hacker had accessed the photo ID data of more than 10,000 users. The hacker was holding the data hostage for a ransom of 300 bitcoins.
The news hit hard for cryptocurrency users who are already feeling the sting of a declining market and one of the worst years for hacks on record. What’s more, the Binance exchange had already made substantial promises to its clients regarding security after the dramatic $40 million hack that occurred in May of this year.
These security breaches, while not unknown in the fiat currency world, do bring to light the dangers that are associated with cryptocurrencies. Because crypto assets are entirely digital, transfers and trades are therefore confined to the internet. This puts dramatically more pressure on portals to maintain strict security and regulatory controls.
Options for change?
A number of potential options have begun to come onto the scene that are designed to protect crypto users. These new platforms are offering ways to connect security and Know Your Customer (KYC) data with other non-cryptocurrency related methods.
The need being what it is, these new platforms are specifically designed to create additional layers of security methodology to both protect exchanges and users simultaneously.
Take, for examp...