Renowned accounting organization KPMG told Bloomberg on Monday that the cryptocurrency market must enhance digital asset security if it wants two hundred and forty-five billion US dollars ($245 billion) worth the crypto industry to grow and evolve.
The cryptocurrency industry has witnessed tremendous growth so far; however, investing in these assets comes with its own set of challenges. Despite researching the exchanges, preparing for volatility, and investigating the best available storage options prior to investing, there is always a slight possibility that you end up being the unfortunate victim of a security hack.
In fact, a recent study revealed that cryptocurrency exchange hacks pocketed in over two hundred and eighty million US dollars ($283 million) last year, despite strengthening security measures. To that, Bloomberg added that close to ten billion US dollars ($9.8 billion) had been purloined by hackers since 2017 owing to insufficient security measures or poorly constituted codes.
Take digital asset security very seriously, KPMG
Thus, according to the Big Four accounting firm KPMG, the cryptocurrency adoption rate will only improve when the digital asset security is strengthened, and the rate at which cryptocurrency exchanges and wallets fall prey to hacks and malware attacks reduces drastically.
KPMG, being among the first few companies to have embraced cryptocurrencies and the concept of blockchain wholeheartedly, says that digital assets still take a backseat when being considered as a worthwhile investment even today.
Institutional investors are still wary of cryptocurrencies as there are not many companies that offer custodian services for crypto. They are not sure whether the crypto holdings can have the same security level as their cash holdings, bonds or stocks, said Sal Ternullo, who is co-heading KPMG’s digital asset services.
Crypto custodial services must view problems as opportunities
Outlining the potential opportunities in the crypto industry, KPMG pointed out that at this point in time, digital asset custodial services have a lot to think about and improve. It is one of those areas that would yield tremendous profits in the future through high management fees and offering parallel services to the evolving crypto ecosystem, asserted Ternullo.
On the whole, KPMG thinks that for the crypto industry to witness the growth and boost in adoption rate, it must cope with strengthened measures in dealing with digital asset security. When it comes to other financial transactions, banks and other financial institutions must comply with regulatory obligations. In the same way, when dealing with cryptocurrency transactions, they must review their existing methodologies, KPMG emphasized.
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