CoinW Fortifies Crypto Security Amid Industry Breaches

The crypto industry has recently faced significant security breaches, highlighting the urgent need for enhanced protection measures across all exchanges. Two notable incidents include the compromise of Binance user accounts through a malicious Chrome plugin, and the theft of OKX user information through AI-generated deepfakes, underscoring the increasing complexity of threats.

As a centralized exchange (CEX), CoinW operates as a crypto portfolio manager, responsible for securing user assets. Historically, CEXs have faced major security threats, including hacking, exploitation of vulnerabilities, and money laundering. Governments and regulatory bodies worldwide are responding by introducing specific regulations and measures to mitigate these risks.

To address these threats, exchanges have implemented various measures, such as on-chain data solutions, multi-factor authentication (MFA), SSL encryption, cold storage, and regulatory compliance. Effective security in crypto exchanges involves coordinated efforts between exchanges, regulators, and users.

CoinW is committed to providing a secure trading environment through a comprehensive security framework. According to CoinW's Head of Security, their approach encompasses frontend and backend safety, technical solutions, security assessments, data storage, and communication encryption.

Unlike traditional banks, CoinW deals with on-chain assets, prioritizing private key security through multi-signature (multi-sig) technology and traditional sharding methods for key storage. They have backup systems for hot wallet recovery and store substantial funds in cold wallets. Real-time security incident monitoring and response systems swiftly detect and address suspicious activities, implementing enhanced verification methods for long inactivity or remote logins.

CoinW's wallet security is fortified through Multi-Party Computation (MPC), distributing keys across four systems and requiring unanimous approval for any transaction. They have also integrated Know Your Address (KYA) alongside the Know Your Transaction (KYT) system, enhancing their capability to identify risks and protect user assets.

CoinW has achieved compliance milestones, such as obtaining a digital currency trading service license from the Australian Transaction Reports and Analysis Centre (AUSTRAC), ensuring a safer and more reliable trading environment for customers.

CoinW's Head of Security emphasizes that the security level of a centralized exchange is determined by its technical measures, business operations, internal management, and its response to security incidents, collectively ensuring the robustness and reliability of the exchange and providing users with a safe and trustworthy trading environment.