In an effort to enhance security within the crypto sector, Kraken recently announced the co-founding of the Blockchain Security Standards Council (BSSC) alongside several other major industry players. This nonprofit organization, which includes well-known companies such as Anchorage Digital, Coinbase, and Fireblocks, aims to establish uniform security standards across the crypto industry to combat various security threats.
The primary mission of the BSSC is to develop consensus-driven security benchmarks and a robust audit process by the end of 2024. By doing so, the council intends to strengthen the industry’s security framework and improve trust in digital assets. According to Kraken Chief Security Officer Nick Percoco, these voluntary security standards are crucial for the maturation of the crypto industry and collaborative efforts are essential for enhancing confidence in cryptoassets.
Apart from developing security standards, the BSSC also plans to engage with regulators and policymakers to ensure the creation of balanced and effective security measures. This proactive engagement seeks to protect consumers while fostering innovation within the blockchain ecosystem.
Kraken’s involvement in the BSSC aligns with its ongoing commitment to security, as evidenced by its role in establishing the Crypto Information Sharing and Analysis Center (ISAC). The ISAC facilitates knowledge sharing and best practices across the crypto sector to reduce cybersecurity risks and enhance the industry’s overall resilience.
The formation of the BSSC is a significant step towards addressing the blockchain trilemma, which involves balancing decentralization, security, and scalability. By focusing on security standards, the BSSC aims to mitigate risks while supporting the growth and scalability of blockchain networks.
Kraken’s involvement in the BSSC comes in the wake of a recent security dispute with blockchain security firm CertiK. In June, CertiK uncovered a critical vulnerability in Kraken’s system that allowed attackers to initiate deposits and receive funds without completing the deposit process. This flaw resulted in the unauthorized withdrawal of $3 million from Kraken’s accounts, leading to accusations of excessive withdrawals and extortion against CertiK.
The dispute between Kraken and CertiK was eventually settled after both parties went public with their sides. CertiK denied any malicious intent and emphasized that its actions were preventive and aimed at securing the platform. The firm offered to return the funds, but Kraken failed to provide a wallet address. Ultimately, CertiK returned the funds to addresses it had on hand, bringing the dispute to a close.
The establishment of the Blockchain Security Standards Council marks a significant milestone in the ongoing efforts to enhance security within the crypto sector. By developing consensus-driven security benchmarks and engaging with regulators, the council aims to create a more secure and trustworthy environment for digital assets. Kraken’s participation in this initiative underscores its commitment to security and highlights the importance of collaborative efforts in strengthening the overall ecosystem.
