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Kraken and Coinbase Form Blockchain Council to Develop Cryptographic Security Standards
Cryptocurrency exchanges Coinbase and Kraken, along with blockchain firms like Fireblocks, have launched a new council aimed at addressing emerging threats like contract exploitation.
American Cryptocurrency Trading Giants The Kraken AND Monetary base have co-founded a new nonprofit organization aimed at safeguarding the industry from emerging threats security threats developing a “consensus of agreed standards”.
In a blog post Wednesday, Kraken said the new organization, called the Blockchain Security Standards Council (BSSC), will seek to establish “uniform security standards” to increase trust in the industry. The council’s founding team also includes Coinbase, Anchorage Digital, Bastion, Figment, Fireblocks, Halborn, OpenZeppelin, Ribbit Capital, and Sentinel Global.
Kraken says all BSSC firms have committed to developing “industry-leading security metrics and a robust audit process by the end of 2024.” For example, the BSSC will focus on addressing threats such as fraud, nation-state targeting, and protocol and contract exploitation.
In addition to addressing safety concerns, the council will also seek to work with regulators to ensure the industry develops “unified standards that protect consumers while fostering innovation in the asset class,” the announcement said.
For Coinbase and Kraken, this isn’t their first time trying their hand at forming boards. In 2019, both platforms co-founded the Crypto Ratings Council to clarify which tokens could be traded without regulatory oversight. Despite these efforts, the council failed to protect Monetary base AND The Kraken from lawsuits filed by the U.S. Securities and Exchange Commission in 2023, which alleged that both companies had violated securities laws.