Bitcoin introduced in the market around ten years ago, and since then the crypto market has been expanding. Even though the bearish trend was worrying many, ventures did not stop stepping in, and investors did not stop investing. The overall crypto industry has made significant progress towards a decentralized form of money. The number of crypto exchange is increasing globally. Crypto has legal verification in many countries.
However, the crypto market faces one issue which is the threat of getting hacked. The exchanges are most of the times vulnerable to such attempts.
Coincheck crypto exchange of Japan got hacked at the beginning of 2018. This attack was the most significant breach of a digital cryptocurrency network since the Mt. Gox hack happened four years ago. This hack was followed a few more hacks in the last year. As per ‘Ledger’ ( which is a known hardware wallet manufacturer), more than USD 850 million worth of cryptocurrency ( which is worth over 50% of all looted crypto since it’s introduction) was looted from online exchanges in 2018. But these hacks are not stopping the crypto market from growing.
Here are the areas on which ventures can focus in order to boost the sense of confidence among the consumers and increase the adoption.
1. Rules & Regulations:
It is essential to protect the interest of both business and customers, so, financial regulators would need to have an approach which would assure this. Crypto market should be looked at with an equivalent level of checking and investigation. Regulators would have to make their compliance criteria accordingly.
Many government organizations around the world are updating their KYC and anti-money laundering policies which are commendable. However, few sectors of the financial industry are lagging behind.
If we want investors to put their money in crypto, we will have to create and maintain a secure and decentralized ambiance ( as these are core components of crypto). With a reliable crypto exchange system only we can expect to increase the social adoption.
2. Business Security
All the crypto exchanges and ventures who are operating in the Crypto space need to make sure that they care about the security. Businesses now are getting aware about the safety of their private keys on digital/crypto exchanges. The successful hacking of Cryptopia and the secretive vanishing of private keys on QuadrigaX, are enough to warn about the risk involved in trusting third parties when it comes to the custody of digital assets.
3. Educating Users/Clients
The last key is to improve individual and institutional education related to cryptocurrencies; plus create awareness on the safe handling of these assets.