Opinion

Why Cryptocurrency Exchanges Are Becoming Targets for Hackers

Cryptocurrency rates have boomed. The cryptocurrency market is now valued at $385 billion, with the Bitcoin price increasing from $8,000 to $8,800. Other major cryptocurrencies too have recorded substantial gains in the 10 to 20 percent range. However, this has come at a price. There has been an equal spate in cyber-attacks. Hackers have gone all out to target crptocurrency exchanges. Recently, cyrptocurrency exchange Coinsecure said that it lost bitcoins worth around Rs. 200 million ($3 million). The police are investigating the case. The company has promised reimbursement for the affected customers.

In fact, some of the biggest attacks that have happened around the world are several times that of Coinsecure’s losses. In 2018, Japan’s Coincheck Inc. reported a $530 million heist. The company said that it lost cryptocurrency called NEM to a hack. Authorities said that they would be conducting inspections of such exchanges following the hack. Other cryptocurrencies, including Bitcoin, suffered a decline in value which began to get reversed after the company said that it would partially reimburse the customers. Many experts feel that even cold wallets have their inherent risks, be it on paper or metal or USB and say that multi-sign wallet is the best. 

Moreover, cryptocurrency is yet to be recognized in most parts of the world. The Reserve Bank of India recently issued a decree directing all regulated entities, including banks, to stop dealing with individuals as well as businesses that are dabbling in digital currencies. This, in effect, is a ban on banks and preventing them from dealing with companies or individuals that trade in cryptocurrencies.

(Image Courtesy: www.pixabay.com)

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