Canada-based cryptocurrency exchange Bitbuy on May 2, 2019, announced that it has completed a Proof of Reserve and Security Audit to bolster its safety mechanisms.
The recent drama surrounding QuadrigaCX has forced crypto exchanges around the world to reassess their security mechanisms. The QuadrigaCX fiasco shows the extent to which things can go haywire if proper precautions are not taken with regards to the safety of assets.
In a bid to ensure avoid a QuadrigaCX 2.0, exchange platform Bitbuy conducted a Proof of Reserve and Security Audit to thoroughly evaluate its cryptocurrency storage methodologies, asset segregation, solvency, and security. The exchange has also run a team risk test on all management and staff personnel.
Bitbuy teamed up with U.S.-based blockchain security research firm CipherBlade to conduct an end-to-end scan on all its security measures. The joint report developed by Bitbuy and CipherBlade points out a few key findings.
The report assures that Bitbuy’s entire fiat holdings – custodial or otherwise – were cross-verified with bank statements and correctly reported in the exchange’s administrative backend. The Security Audit found the sum of digital assets held by Bitbuy’s cold and hot storage wallets to be equal to the reported amount of digital assets held by the exchange’s users.
The exchange successfully passed evaluations of cold storage procedures, client information handling, licensing, company registration and team background checks, the report noted.
CipherBlade’s Rich Sanders said:
“Bitbuy was extremely forthcoming in the information they provided, and this information was provided in a timely and complete matter. This commitment to transparency is something that should be both a consumer expectation and self-regulatory best practice.”
Along with publishing audit results, Bitbuy also unveiled its “Pro Trade” platform which allows users to enjoy high-frequency trading, and other advanced features. The exchange also declared the launch of its institutional-grade over-the-counter (OTC) trading desk for large size client orders.
In light of recent attacks on exchanges like Cryptopia and DragonEX, exchanges are leaving nothing to luck when it comes to security. BTCManager reported on April 12, 2019, how Malta-based exchange Binance teamed up with a different security firm, CipherTrace to tighten its security.
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