Kraken Is The Most Secure Crypto Exchange – Report

Nov 08, 2018 at 0:59

Cyber-security firm Group-IB and CryptoIns project have ranked Kraken as the most secure among virtual currency exchanges today. It is also the cheapest to insure.

In a report by Hard Fork, Group-IB and CryptoIns assessed the level of security cryptocurrency exchanges have–which they claim is the first of its kind– to determine insurance premiums needed to cover crypto assets in case of cyber attacks, theft, fraud, and other illegal actions.

The insurance framework evaluates criteria such as the level of technical security, the reliability of key storage, passwords, and personal data of customers provided by the exchanges.

Group-IB said they have sorted cryptocurrency exchanges into four groups according to their level of risk.

In their framework, they have set the base insurance rate at 2.5 percent per quarter.

And based on their evaluation, Kraken is the only exchange which passed standards in the ‘most secure’ category.

“According to our estimates, Kraken is the most secure exchange, with 1.25 percent insurance rate,” Group-IB told Hard Fork.

This translates to a cost or 0.0125 BTC to insure 1 BTC. This is covered for three months.

The second most secure are Bittrex and Coinbase Pro, each with a 1.5 percent insurance premium for protection.

Meanwhile, a common risk grading is applicable with Binance, Bitfinex, Bithumb, Bitmex, Localbitcoins, MyEtherWallet, and Poloniex, each having premium of 1.9 percent.

The least secure cryptocurrency exchange was Yobit. Other excluded exchanges are namely Zaif, Bitstamp, TopBTC, and Bit-Z.

Group-IB, as well as its partner platform CryptoIns, declined to reveal the exact measurements taken into account in determining the risk of exchanges, citing confidentiality of the information.

CryptoIns was developed by Swiss broker ASPIS SA, with Selecta Insurance & Reinsurance Company, to handle insurance coverage.