Researchers rank encryption exchanges according to how safe they are

The Group-IB Cyber ​​Security Society has assessed the security of electronic encryption transactions as a means of assessing insurance risk. He found the long-lasting Kraken platform the safest, with OKEx, Huobi Pro and CoinCheck being the most dangerous.

Along with the CryptoIns IT platform, the IB group claims to have developed the world's first rating system to determine the premiums required to adequately cover cryptographies held in large exchanges.

Losses as a result of cyber attacks for software exchange, theft, fraud and illegal encryption personnel are obviously covered by the new encryption insurance policy.

Users in more than twelve exchanges can now request their use time to be economically protected by CryptoIns.

The framework weighs criteria such as the level of technical security, the reliability of the basic storage spaces, the passwords and the personal data of the customers provided by each exchange.

It also looks at the quality of each individual risk management system, and how rigid your client processes are (KYC) and the fight against money laundering (AML).

"First of all, we evaluate how encryption transactions deal with cryptographic and fiat assets: what are the asset exchange and asset management processes," a Group IB spokesman told Hard Fork. "In some cases, with the consent of the founders, evaluation includes penetration testing using social engineering methods aimed at compromising the network through the most vulnerable link in every organism – man."

The CryptoIns platform was developed by Swiss broker ASPIS SA, with Selecta Insurance & Reinsurance Company managing all insurance coverage.

Encryption at Kraken is the cheapest to insure

The insurance framework classifies the encryption exchanges into four groups in order of risk. The LB group considered that the exchanges in the first group were the safest, while the fourth group considered it to be completely inseparable.

The basic insurance rate is 2.5% per quarter, with a discount based on the group (with a maximum discount of 50%).

The only crypto frequency exchange group considered to be worthy of the safest category is Kraken that serves long. "ONEaccording to our estimates, Kraken is the safest exchange, with an insurance rate of 1.25%, "Group-IB told Hard Fork.

This means that for me to secure 1 BTC encryption stored in Kraken, it will cost me 0.0125 BTC for 90 days coverage.

The second group includes Bittrex and Coinbase Pro, with encryption being maintained in these exchanges by requesting a 1.5% premium for protection.

Digital assets in Binance encryption exchanges, Bitfinex, Bithumb, Bitmex, Localbitcoins, MyEtherWallet and Poloniex had paid premiums of 1.9%, making it the most common level of risk rating.

The less securely-shifted Cryptographic Management Group-IB analyzed was Yobit, which was removed from the list altogether shortly before publication with its insurance framework. Other exempted stock markets include Zaif, Bitstamp, TopBTC and Bit-Z, said Group-IB spokesman at Hard Fork.

Unfortunately, when pressed, neither Group IB nor CryptoIns were ready to reveal the accurate estimates made when the exchange of labeling was too risky to insure, stating that this information was confidential.

The maximum amount of encryption users able to insure is equivalent to 15 BTC ($ 96,000 in print time) with premiums payable in up to 100 different coins.

CryptoIns says it will issue insurance payments to Bitcoin. Full coverage of the entire year is also available, with basic insurance costs increasing proportionally to the coverage period.

A spokesman also confirmed that those interested in covering their cryoprotection should be subject to KYC / AML procedures.

Published on 6 November 2018 – 17:10 UTC