Kraken, Coinbase form blockchain council to develop crypto security standards

As a seasoned analyst with extensive experience in the crypto industry, I believe the formation of the Blockchain Security Standards Council (BSSC) by Kraken and Coinbase is a commendable initiative to tackle emerging security threats and build confidence in the sector. With an increasing number of firms joining this council, it’s evident that the industry recognizes the importance of developing uniform security standards.

Coinbase, Kraken, and other blockchain companies including Fireblocks have formed a new council to tackle emerging risks in the cryptocurrency sphere, specifically focusing on contract exploits.

Kraken and Coinbase, two prominent American cryptocurrency exchanges, have established a non-profit entity with the mission to enhance industry safety by creating a “shared understanding of best practices.” This collaborative approach will help protect the crypto market from emerging risks.

As a crypto investor, I’m excited to share that Kraken recently announced the formation of the Blockchain Security Standards Council (BSSC) in a blog post on Wednesday. The goal of this new organization is to create “uniform security standards” across the industry and boost confidence among investors like us. I’m proud to see that esteemed organizations such as Coinbase, Anchorage Digital, Bastion, Figment, Fireblocks, Halborn, OpenZeppelin, Ribbit Capital, and Sentinel Global are joining Kraken in this endeavor. Together, we aim to set the bar high for security practices within the crypto space.

Kraken asserted that every member company in the British Standards for Secure Communications (BSSC) is dedicated to establishing “security industry benchmarks and a rigorous audit mechanism” by the year-end 2024. The BSSC intends to tackle threats like fraud, targeted attacks from nation-states, and vulnerabilities in protocols and contracts.

In addition to tackling security matters, the council intends to collaborate with regulatory bodies to establish “consistent regulations that shield consumers and foster inventiveness within the asset class.”

As a crypto investor, I’ve noticed that Coinbase and Kraken have attempted to establish regulatory clarity around trading certain tokens before. Back in 2019, they collaborated to create the Crypto Ratings Council. The goal was to provide transparency on which tokens could be traded without securities regulations oversight. However, despite these initiatives, we’ve seen legal actions taken against both platforms by the U.S. Securities and Exchange Commission in 2023. These lawsuits alleged that Coinbase and Kraken had violated securities laws.

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2024-07-10 17:02