Any Crypto exchange mainly deals with financial and economic transactions. It means that it needs to meet particular safety needs as well as AML and KYC regulations. Crypto exchanges do not hold the uncertainty of volatility and additional market risks concerning their owners. But, Crypto exchanges come with their particular risks. Our risk platform has been built as a particular point of access for consolidating and overcoming risk technology legacy estate challenges.
A risk always prevails that the service can fail and data may be entirely lost. Additionally, there are risks of leakage of data when stored on foreign servers or within a cloud.
A Crypto exchange needs a safe backup protocol that comes with data stored within such a point that would be independent of the exchange server’s operation. It is better if you do not put all the eggs in one basket as the data on various carriers can level the risks. Additionally, it is essential to create advanced backups and upgrade them daily. This information needs to be encrypted security, and access to it needs to be protected and safe. Also, backup protocols need to be checked from time to time for ensuring that information can be readily recovered.
Severe risks for cryptocurrency exchanges are unauthorised access or hacking infrastructure and money, and loss of money due to an error. Fund loss can be a point of no return when it comes to businesses, therefore you need to avoid this by hook or by crook.
To prevent such kinds of losses ensure that the infrastructure and software are safeguarded from vulnerabilities. You need to have a security department, including a verification code operating on production servers. Additionally, programmers need to be trained enough to understand the vulnerabilities. On the other hand, system administrators need to check the system and trace any unusual activity related to the same. Make sure to conduct an external security audit, and make use of the two-factor authentication when it comes to the protection of user funds.
The number of customers is growing, plus the infrastructure is not yet ready for such kinds of pressure. Due to this, there are problems and failures with the trade and withdrawal, the arrival of vulnerabilities that lead to theft or risk or loss of money. Other problems are issues with increased uncertainties of hacking, user security risks and exchange failure for a long time and reputational losses.
To prevent this, make sure to carefully strategise your scaling plans and conduct simulation tests with high server loads. Furthermore, the best time for you to begin is generally the winter when the user number does not rise very quickly and enable for all sorts of testing.
We offer microservice architecture solutions for preventing infrastructure failures. Such an algorithm enables making specific changes to any of the services without any impact on the performance of the whole platform. It increases the security level and ensures an interrupted working of the platform.
Problems with global and local regulators and non-compliance with KYC and AML requirements can point to website blockages in many countries and give rise to problems with exchanges as banks are accepting Fiat currency.
Crypto exchanges need to comply with the rules and regulations of the nation in which it works and international and global standards of safety, investor protection, and control. The global requirements of KYC and all need to be followed. To work by the law, the exchanges need manual verification or suspicious trading activities, user identification and compliance with the addition of standards. In the case of various jurisdictions, sanctions are associated with countries like Iran, North Korea, Libya and Syria. Also, prohibitions are conducting businesses with the representatives of such States. Additionally, it is also essential to comply with the rules and regulations of tax in which the platform works. It also needs to be licensed when it is provided for the law of the states within which you operate.
Our platform gives you comprehensive execution, infrastructure and risk management tools to reduce risks in a regulated, high volume, global trading and latency-sensitive environment. With our risk platform, you can manage and monitor your risk exposure across regions markets, asset classes and accounts in real-time.
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