The skyrocketing number of digital asset services shows increased crypto awareness and adoption, which necessitates heightened security features, according to HashCash Consultants CEO Raj Chowdhury.
With a notable portion of the global population gearing up to cryptocurrencies as an alternative payment ecosystem, Chowdhury believes security feature updates are prudent to safeguard crypto wallet owners from external hackers.
He noted:
“The growth in global crypto adoption is an indicator of the people’s dissolution with conventional finance systems. The volatile crypto markets attract traders seeking huge returns, while increased security integrations protect the wallet-stored assets from cybercriminals.”
According to a recent report by blockchain analytic firm Chainalysis, North Korean hacks on crypto platforms increased seven times after digital assets worth nearly $400 million were looted.
Chainalysis added that individual crypto hacks emerged because of malware available on the darknet.
Therefore, with global crypto wallet owners topping 300 million in 2021, Chowdhury believes boosting security has become more pressing.
Per the report:
“Trends of crypto theft have increased as cybercriminals continue targeting unsuspecting users as well as platforms with low security. Selecting a trustworthy platform is crucial along with adhering to wallet safety protocols.”
Meanwhile, the Hong Kong government is eyeing establishing a regulatory system for the virtual asset industry, as recently disclosed by Hui Ching-yu, the Secretary for Financial Services and the Treasury.
Regulation continues to be a hot issue in the crypto space because relevant authorities have shown interest in developing systemic and operational frameworks intended to tackle risks like money laundering and scams.
Three European Union regulators recently warned investors within the bloc of potential losses accustomed to the volatile digital currency ecosystem.