TLDR:
Canadian crypto exchanges VirgoCX and Netcoins partner with Coincover for enhanced security
Partnership aims to protect customer funds against hacking, lost access, and fraud
Coincover’s technology helps exchanges exceed regulatory requirements
Crypto losses reached $572 million in Q2 2024, with 70% due to exchange hacks
Canada has seen a 213% increase in crypto usage since 2019
Canadian cryptocurrency exchanges VirgoCX and Netcoins have announced a partnership with blockchain protection company Coincover to enhance security for their customers.
Protecting Customer Assets
The partnership between Coincover and the two Canadian exchanges aims to provide comprehensive protection for customer funds against various threats, including hacking, lost access, and fraudulent activities.
Coincover’s technology offers monitoring tools capable of detecting suspicious and malicious activities, including potential internal threats, before they can escalate into larger problems.
This move towards enhanced security is particularly relevant given the recent surge in crypto-related losses.
In the second quarter of 2024, the crypto industry saw losses amounting to $572 million, with a staggering 70% of these losses attributed to hacks on centralized exchanges.
The risk is even more pronounced in Canada, where crypto usage has increased by 213% since 2019.
Regulatory Compliance and Beyond
The collaboration between Coincover and the Canadian exchanges is not only about protecting assets but also about meeting and exceeding regulatory requirements.
The Canadian Securities Administrator has recommended that crypto-asset companies protect customers against asset losses due to cyber and crime threats.
Coincover’s risk management platform enables VirgoCX and Netcoins to surpass these requirements and set their own high standards for protection.
Fraser Matthews, CEO of Netcoins, emphasized the significance of this partnership in addressing the growing interest in cryptocurrency in Canada and the associated security challenges.
He stated that Coincover’s solutions provide a “game-changer in keeping crypto safe,” ensuring access to client assets even in worst-case scenarios.
Similarly, Steve Bie, Chief Compliance Officer at VirgoCX, expressed enthusiasm about the partnership, highlighting the added reassurance it offers to their clients regarding the safety of their digital assets.
He emphasized the importance of users feeling that their funds are as secure as they would be in traditional financial institutions.
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