Leading American cryptocurrency companies Kraken and Coinbase (NASDAQ) have joined forces and become co-founders of a new nonprofit organization aimed at strengthening security in the cryptocurrency industry.
Named the Blockchain Security Standards Council, this organization aims to develop and implement coordinated standards to enhance trust and security in the world of cryptocurrencies.
Mission and Goals of the New Council
According to information posted on Kraken’s official website, the new Blockchain Security Standards Council will focus on creating «unified security standards» that will bolster trust in the cryptocurrency industry and improve its protection against emerging threats. In addition to Kraken and Coinbase, the founders of the council include other cryptocurrency companies such as Anchorage Digital, Bastion, Figment, Fireblocks, Halborn, OpenZeppelin, Ribbit Capital, and Sentinel Global.
By the end of 2024, the council plans to develop comprehensive «industry security standards and a robust audit process.» Attention will also be given to engaging with regulatory bodies to create «uniform requirements» that will ensure consumer protection and promote innovation in the cryptocurrency space.
Previous Initiatives and Context
This is not the first joint initiative for Coinbase and Kraken. In 2019, they co-founded the Crypto Ratings Council, which aimed to establish criteria for determining which tokens could be traded freely without regulatory oversight. Despite their efforts, this initiative did not fully protect both companies from lawsuits filed against them by the U.S. Securities and Exchange Commission (SEC).
Impact and Prospects
Experts believe that the new organization could be a significant step towards standardizing security in the cryptocurrency industry, where the lack of unified standards often leads to vulnerabilities and legal risks. Developing widely accepted security standards and effective audit procedures can greatly enhance protection against threats and strengthen consumer trust in cryptocurrency platforms.
Conclusion and Future Outlook
The establishment of the Blockchain Security Standards Council reflects the growing need for clear and coordinated approaches to security in the cryptocurrency industry. Whether the new organization will effectively address security challenges and become a reliable guide for the cryptocurrency sector remains to be seen in the future. Nevertheless, the efforts undertaken by Kraken and Coinbase, as well as their partner companies, could play a key role in shaping a secure and sustainable future for cryptocurrencies.
