iComply Partners with Hosho to Improve the Security of Trading Cryptocurrencies
iComply Investor Services (“iComply”), a leading global RegTech platform for digital finance and cryptocurrencies has revealed a partnership with Hosho Group LLC. (“Hosho”). A company which offers smart contract auditing, penetration testing, and cybersecurity maintenance services aimed specifically at the blockchain industry.
Seeing as Asgardia has their own cryptocurrency called Solar, issues of cybersecurity are of utmost importance.
The New York State Office of the Attorney General recently launched the Virtual Markets Integrity Initiative, which furnished a report that examined how virtual currencies (cryptocurrencies) are traded.
The reports main finding was that the security of the funds on virtual asset trading platforms was the biggest issue. Sophisticated criminals are continuously trying to infiltrate these platforms, and have reportedly stolen billions of dollars’ worth of virtual currency. Once an unauthorized third-party gains access to a customer account, those funds can be quickly transferred beyond the reach of law enforcement.
Shockingly, an average of $23 Million USD of cryptocurrency is hacked or stolen every single as a result of security vulnerabilities.
Matthew Unger, CEO of iComply explained that most virtual asset exchanges presently use an inefficient patchwork of products and services as a way to enable effective multi-jurisdictional compliance. However, these disjointed systems create vulnerabilities that risk investor funds, data, and the platform’s reputation.
Unger added that when they met with the product and engineering teams of these same exchanges his company was shocked by the vulnerabilities they encountered. Particularly from their KYC, facial recognition, and AML providers. Investors’ personal data is being stored on local drives, in email inboxes, and often is neither transmitted nor stored with encryption.
Thus, to solve this problem iComply has come up with iComplyKYC which can be used as a white label solution to gain 100% coverage of every issue outlined in the Attorney General’s report and the standards required by FINRA for security tokens – in a single, encrypted, and secure API.
Moreover, Hosho reported that on average, 82% of the smart contracts that the team has audited have some sort of vulnerability, while 27% of these are critical and contract breaking, meaning that funds could have been lost or stolen.
Hartej Sawhney, President of Hosho stated that it’s their company’s goal to push the blockchain industry forward by improving the overall security awareness and standards across the board. Working with iComply is a no-brainer due to their ethos and philosophy, which align perfectly with Hosho’s. Sawhney added that both companies are putting in place the infrastructure, services and technologies that are necessary for the long-term development of a robust and secure ecosystem.
If you’re interested in blockchain technology and improving our world then join Asgardia today and network with businesses, innovators, and forward-looking people.
When preparing news, materials from the following publications were used:Imprint
Image Credit: Pushish Images / Shutterstock