How To Tell If Your Cryptocurrency Exchange Is Secure

MARISSA HAYDEN
Content Producer · 24 February 2021
If you’ve decided to invest in cryptocurrencies, then you’ve likely come across many exchanges to choose from. One consideration you should make when choosing a cryptocurrency exchange is how safe and secure it is. After all, losing your investment to hackers or a cryptojacker, as some call it, is likely to leave you quite unhappy. We spoke with the CEO of Binance Australia, Jeff Yew, to discuss the signs of a secure and safe cryptocurrency exchange.

How can consumers tell if a crypto exchange is safe?

Jeff: Being a relatively young industry, it can be difficult for newcomers to identify which exchanges they can trade with while maintaining confidence in the security of their assets.

For a start, all digital currency exchanges in Australia have to be registered with AUSTRAC. Also, most digital currency exchanges will affiliate themselves with a series of government and non-government industry organisations as a way of highlighting the level of legitimacy held by the exchange. Organisations such as Blockchain Australia, FinTech Australian are a good place to start. Any awards the exchange has received my also help to legitimize the platform.

For an added level of confidence for locals, look for a crypto exchange that has its head office in Australia.

What is AUSTRAC?

Jeff: AUSTRAC (Australian Transaction Reports and Analysis Centre) is the financial intelligence regulator responsible for preventing, detecting and responding to criminal abuse of the financial system to protect the community from serious and organised crime.

What does it mean if a crypto exchange is registered with AUSTRAC?

Jeff: All legitimate exchanges in Australia have to be registered with AUSTRAC. Being an AUSTRAC registered digital currency exchange provider, means the platform is compliant with industry standards which has heavy emphasis on AML (Anti-Money Laundering) and security. They should be able to offer a high standard of service to the retail crowd, as well as small companies and large institutions including self managed superannuation funds (SMSFs).

What does it mean if an exchange is a member of Blockchain Australia?

Jeff: Blockchain Australia is the leading industry body for Australian businesses and professionals participating in the digital economy through blockchain technology. So, when local exchanges are Blockchain Australia members, this means that they assume a seat alongside other local industry experts to help advance the adoption of blockchain technology in Australia, and advocate for desirable regulatory and policy settings. Partnering with Blockchain Australia demonstrates a commitment to actively working with industry peers to facilitate discussion and education that progress the use of blockchain technologies in Australia.

Why is this important for consumers?

Jeff: This is important for consumers to know as it demonstrates that local exchange providers are regulated and compliant with all Australian standards, providing consumers, retail and institutions alike with a greater trust in digital currencies and deeper legitimacy to the blockchain and crypto industries.

Many may not be aware that it has been nearly a decade since the Reserve Bank of Australia (RBA) declared Bitcoin legal in 2013. This can be demonstrated by Australia’s progressive lead when it comes to mature regulation, banking support, as well as having one the world’s highest number of registered crypto service providers per capita in the digital currency space. However, consumer and investor awareness is still yet to catch up as quickly as compared to other asset classes.

Header image: lucadp (Shutterstock.com)

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About Jeff Yew

Jeff Yew is the CEO of Binance Australia. Binance Australia is a digital currency exchange platform that enables Australian customers to easily buy and trade cryptocurrencies with Australian Dollar (AUD). Backed by Binance, Binance Australia offers users deep liquidity and convenient deposit and withdrawal methods while leveraging cutting-edge technology from Binance.com’s advanced trading platform.

This article was reviewed by our Content Producer Marissa Hayden before it was published as part of our fact-checking process.


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