Security
Encryption: All sensitive data, including user credentials, personal information, and financial data, is encrypted using strong encryption methods such as SSL or TLS.
Two-Factor Authentication (2FA): 2FA should be implemented to ensure that only authorized users can access their accounts. This can be done using Google Authenticator or other similar apps.
Cold Storage: A significant portion of the cryptocurrency holdings should be stored offline, in cold storage wallets. This minimizes the risk of loss due to hacking or other security breaches.
Firewall Protection: The exchange should be protected by a strong firewall that can identify and block unauthorized access attempts.
Regular Audits: The exchange will undergo regular security audits to identify any vulnerabilities and address them before they can be exploited.
KYC and AML Procedures: Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures are implemented to ensure that users are legitimate and that their funds are not derived from illegal activities.
Multi-Signature Wallets: Multi-signature wallets should are used to ensure that transactions require multiple parties to authorize before they can be executed.
Segregation of Duties: Employees with access to sensitive data or financial resources are divided into different teams, with each team being responsible for a different area of the exchange’s operations.
DDoS Protection: Distributed Denial of Service (DDoS) attacks are common in the cryptocurrency world. The exchange is protected by DDoS protection software that can detect and block these types of attacks.
Emergency Response Plan: The exchange should have an emergency response plan in place that outlines the steps to be taken in the event of a security breach. This plan should be regularly reviewed and updated as necessary.
