The cyber security threats against cryptocurrency exchanges are currently at an all-time high. As platforms continue to come under attack, the CEO of First Global Credit, Gavin Smith, has advised traders and exchange platforms to minimize risk by following better standards.
Smith asked the companies to reconsider their existing business strategies to ensure that their risks don’t outweigh potential benefits. He was speaking at the Blockchain Money Conference in London last week where he shared the stage with some of the other prominent names in the cryptocurrency industry. First Global Credit, in its press release, quotes its CEO, saying:
“In the conventional capital markets, we have many metrics used to measure risk. They are not great; they are not foolproof, but they are a decent framework that measures where the risk comes from. In the cryptocurrency world, we don’t have it yet.”
His statement was soon followed by an example of how First Global Credit is currently reducing the counterparty risk by using Bitcoin as a collateral margin to trade against fiat currencies, stocks, precious metals and ETFs. In order to minimize the risk exposure, the platform rates global Bitcoin exchanges based on various criteria, including their