This article was first published on Stories by OAX on Medium
The following Q&A was originally published at http://blockchainassetreview.com.
By Tsering Namgyal
Recently, Hong Kong’s oldest cryptocurrency exchange Gatecoin (see here) filed for insolvency from the repercussions of a cybersecurity incident in 2016 and the US crypto exchange BitFinex reportedly lost nearly $850mn in customer assets.In the first quarter of this year alone, criminals stole an estimated US$356mn from exchanges and infrastructures, according to research firm CipherTrace. These incidents showcase how exchanges continue to remain vulnerable and why global and national watchdogs are up in arms. Paul Li, general counsel of OAX Foundation, which is working on a decentralized exchange, talks to Blockchain Asset Review on a wide range of issues including different measures that cryptocurrency exchanges can implement to better safeguard customer assets and the evolution of regulatory frameworks, both nationally and globally. Q: Given the rise cybersecurity hacking incidents, the number of custody solutions has come up including Anchorage, Vontobel, Fidelity, Coinbase, State Street and German stock exchange etc? Would the rise of these custodians help mainstream adoption of cryptos as an asset class, especially amongst institutional investors?
A: The rise in improved custody solutions is an essential requirement for greater mainstream adoption by both professional and institutional investors. Until there are significantly better custody solutions available, such investors are restricted from investing due to the operational and investment risk issues that currently in the digital asset market.
Q: Recently, Hong Kong Bitcoin exchange Gatecoin has filed for bankruptcy from the repercussions of a hacking incident a few years ago? What is that they could have done differently?
A: Gatecoin suffered through several unfortunate incidents which impacted their ongoing viability. One of the main incidents was that they were victims of a hack in 2016. It appears as though this hack resulted in financial pressures which they were ...
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Stories by OAX on Medium