The cryptocurrency exchange KuCoin announces, on April 20, that they have completed a strategic partnership with the crypto assets’ custody platform Onchain Custodian. This new cooperation will add multiple layers of security to users’ assets on the exchange, thus making it impossible to breach or hack crypto assets from the platform.
Lockton will Offer Insurance Services
Per the KuCoin’s announcement, the Singapore-based custodian company will provide its services for the “safekeeping” of the digital assets on the platform. The world’s largest private insurance brokerage firm, Lockton, will take care of the custodial funds.
The partnership between the KuCoin and Onchain Custodian will benefit the users of the exchange as their assets will be kept in strict custodial services and efficient security measures. The insurance services will also be offered by Onchain Custodian to the exchange. Both companies are determined to “ensure the security of the crypto asset market infrastructure from various aspects such as rules, processes, and technologies”.
The CEO of KuCoin Global, Johnny Lyu, said:
“Since its establishment in 2017, security has always been one of KuCoin’s top concerns. For this reason, we have joined forces with leading global security companies such as Chainalysis and global white hats to protect users’ crypto assets. After the cooperation with Onchain Custodian, we will further improve the security of user assets by implementing asset separation. Onchain Custodian’s regular audit system and insurance company will provide an additional layer of protection for KuCoin users,” he added.
Crypto Funds Need Strong Security Compliance
The initiative is taken on the part of the crypto exchange due to the growing numbers of theft attacks. In 2019, 28 different cases of hacking attacks reported and 70% were stolen digital funds. This has shaken the people’s belief in the centralized crypto exchanges. This is the reason why KuCoin is implementing the latest technology for the safe custody of the crypto funds.
The announcement reads:
‘’KuCoin will continuously improve the security and compliance of crypto assets to create a safe trading environment for investors.’’
The infrastructure for the development of the crypto assets is not so updated as compared to traditional assets. To reach a mature age, there still has some time.