May 04, 2018 278By Robert Johnson
“We have established a cybersecurity program and related policies and training, conduct periodic penetration testing and vulnerability assessments, and undertake security risk assessments among myriad other operational and technical safeguards. We operate an active bug bounty program to pay third-party developers for vulnerability tips. We will continue to invest aggressively in industry-leading technology and practices to secure customers’ data and virtual currency assets, even as our investment and commitment to security go far beyond what the law requires.”Moreover, within their responses, Coinbase pay heavy focus on how they staff the exchange, stating that they are constantly expanding their engineering team, the branch of Coinbase who are responsible for ensuring that all systems remain secure and of course, up to date. The continue by discussing their willingness to work alongside authorities and regulators to ensure that they uphold their responsibility to protect their customers. Thus far, the response by Coinbase seems to be very professional, and, I assume, exactly the sort of response Schneiderman wanted to here. As this develops, we expect to see more responses surface from the remainder of the cryptocurrency exchanges that have received the questionnaire. As I have mentioned, we can only see how this will go on to provide evidence for further investigations, otherwise, if this wasn’t Schneiderman’s intention from the start, then why would he issue the questionnaires in the first place, surely this is not just out of curiosity and surely there are some deeper motivations driving this? Either way, assuming the exchanges remain honest and transparent, this shouldn’t cause too much damage. We don’t expect this to be the start of mass regulation across the USA, but until the New York Attorney General’s motivations are made clear, the exchanges at the brunt of this, may start to worry about what’s coming next. For now, we will continue to see how this story develops.