By at least $ 9.8 billion in digital assets have been stolen by hackers since 2017 due to security or code issues, Bloomberg writes, citing a new report from auditing firm KPMG. Security is paramount to cryptocurrency distribution among institutional investors, analysts say.
“Institutional investors will not take the risk of owning crypto assets if their value cannot be protected in the same way as traditional money, stocks and bonds,” said Sal Ternullo, Co-Head of Crypto Services at KPMG. – As crypto assets grow, custodians have an excellent opportunity to earn both on commissions for the direct provision of custody services, and on related services, which are possible only in a developing crypto ecosystem “.
According to KPMG, the cryptocurrency industry needs to strive to raise asset storage standards their clients. As with any financial transactions, banks and brokers must comply with user identification and anti-money laundering requirements. Even established financial institutions with sound compliance programs should “improve their methodologies to respond to the unique conditions of crypto assets and the associated data management challenges,” the company said..
Previously, KPMG analysts have already expressed a similar thought when they wrote that institutionalization is a prerequisite for unlocking the full potential of cryptocurrency assets. They also assumed that cryptocurrencies could increase the overall level of trust in the financial system due to their transparency..
Last November, KPMG released a ranking of the top fintech companies, including Robinhood, Revolut, Coinbase, Liquid and Binance..
- PayPal Confirms Information on Adding Bitcoin Support Payment companies PayPal and Venmo are launching a joint product to buy, sell and store cryptocurrencies, including bitcoin, Reuters writes, citing the statement of the first.
- US Presidential Candidate Michael Bloomberg Reveals Cryptocurrency Regulation Plan.