- Crypto exchanges the world over are upping their security game
- This after a recent report exposed that the majority of exchanges indulge in unchecked wash trading
- Kraken makes 2FA check mandatory for all users
U.S.-based cryptocurrency exchange platform Kraken’s chief security officer (CSO) Nick Percoco on March 26, 2019, announced through a blog post that the exchange has amped up its security measures by making Two Factor Authentication (2FA) mandatory for its users.
Exchanges Take Proactive Security Measures
On March 20, 2019, Bitwise Asset Management filed a report with the U.S. Securities and Exchange Commission (SEC) which claimed that the majority of cryptocurrency exchanges inflate their trading volume.
Unsurprisingly, the report managed to open a can of worms in the nascent crypto ecosystem and has created an invisible race among digital asset trading platforms to prove their concern for security.
The report revealed that despite its impressive pace of technological advancement, security remains a big concern for the cryptocurrency industry.
Now, in a bid to prove its commitment to user’s safety, Kraken has made 2FA mandatory for all its users.
For the uninitiated, 2FA typically requires users to complete a two-step verification process in which after feeding their password, users are required to enter a one-time password (OTP) typically received via SMS or email. Notably, Kraken supports the popular 2FA software Google Authenticator. It also supports Yubikey, a hardware device that generates an OTP when touched by the user.
It’s worth highlighting that the 2FA process is not something new implemented by Kraken. The exchange has always given its users the option to opt for it for an extra layer of security. However, now it has made the process mandatory for all its users.
Say Hello to Kraken Security Labs
In the blog post, Percoco also announced the launch of Kraken Security Labs.
The team at Kraken Security Labs will work to enhance the exchange’s products security. Moreover, the team will also bolster the security of the entire cryptocurrency ecosystem by regularly performing vulnerability research against third-party products – hardware wallets, software wallets, and other peripheral technology.
The team will disclose its findings directly to the exchange to improve its security. Once an identified threat is fixed by the exchange, complete details pertaining to the issue and its solution will be provided to users.
Seeing the increased concern for security among users, a number of exchanges and trading platforms have recently made moves to strengthen their security measures.
It won’t be a stretch to say that this fresh enthusiasm towards security has in some manner stemmed from another recent report which posited that the world’s top cryptocurrency exchanges are involved in the practice of inflating and faking their trading volume.