Bithumb is applying Multi-sig technology that is adopted by major companies to prevent security weaknesses in advance and to tighten up its security to protect its customers’ assets.
According to industry, Bithumb is applying Multi-sig technology that applies multiple encrypted keys that are necessary for cryptocurrency transactions.
Current cryptocurrency security method provides only one encrypted key. As a result, encrypted keys that are stored within accounts are vulnerable to being stolen when a cryptocurrency exchange faces an outside attack. On the other hand, Multi-sig technology requires two keys out of three personal keys to open a cryptocurrency wallet and it can prevent an access on assets from an outside attack even when an exchange is going under bankruptcy or has its server hacked.
Multi-sig technology, which is the most certain method for protecting cryptocurrencies, is also highly recommended by information protection authorities to relevant industries.
Because Multi-sig system requires application of difficult IT security technologies and large investments, there are only but few global cryptocurrency exchanges that have adopted such system.
Bithumb recently started providing technical support regarding Smart Contract deposit process to those exchanges that are having difficult times with Multi-sig technology.
Methods that utilize Smart Contracts to send cryptocurrencies are currently generalized. However, some cryptocurrency exchanges are having difficult times with handling assets due to lack of internal programs for sending Smart Contracts.
By applying Multi-sig technology, Bithumb has been able to take preemptive actions against AML (Anti-Money Laundering) issue as well.
Meanwhile, Bithumb obtained ISMS (Information Security Management System) certification at the end of last year and is also working on issuing OTP (One Time Password) cards and tightening up verification procedures to tighten up its security on personal assets.
Bithumb also established a hotline between four major South Korean cryptocurrency exchange regarding money laundering.
It has been participating in many activities for preventing voice-phishing and they had prevented about 80 cases of voice-phishing incidents in 2018 and returned $1.6 million (1.8 billion KRW) worth of assets back to their customers.
It has been putting efforts into protecting their customers by preparing for joining South Korea’s biggest insurances.
Limits for Hyundai Marine & Fire Insurance’s liability insurances of compensation for cyber insurance and personal information protection are both $2.66 million (3 billion KRW) and these are the biggest insurances joined by a South Korean cryptocurrency exchange.
It has been working on fighting money laundering together through the hotline established between cryptocurrency exchanges and it has been putting efforts into preventing any damage on its customers’ assets in advance by sharing suspicious information in real-time.
“Our goal is to establish the best available security system that can be trusted by our customers.” said a representative for Bithumb. “We are going to continue to do our best to create a cryptocurrency ecosystem where customers feel safe with cryptocurrency transactions.”
Staff Reporter Gil, Jaeshik | osolgil@etnews.com