- Kraken, Coinbase, and other crypto companies have announced the formation of the Blockchain Security Standards Council (BSSC)
- The BSSC has aimed to establish standards and audit schemes to enhance trust and reduce attacks in the blockchain ecosystem
- Technical audit firms Halborn and OpenZeppelin, along with Anchorage Digital and Fireblocks, have joined as founding members
Kraken, Coinbase and a clutch of other crypto companies have announced the formation of the Blockchain Security Standards Council (BSSC) to set and enforce security standards within the blockchain industry. The council aims to establish standards and companion audit schemes to enhance trust and confidence in the blockchain ecosystem and reduce the potential of attacks on crypto entities. Technical audit firms Halborn and OpenZeppelin are among the founder members, alongside custody firms Anchorage Digital and Fireblocks.
BSSC Can Make “Significant Difference”
The BSSC announced its formation through a press release, pointing out that in 2024 alone, the crypto industry has faced over one hundred security breaches, underscoring the urgent need for a body to standardise security standards. BSSC Executive Director Greg Kohn expressed strong confidence in the initiative’s potential impact:
We are deeply confident that taking even the first steps in getting the blockchain industry aligned on foundational security practices will make a significant difference. When we look at many of the well-publicized incidents over the past couple of years, if they had even some of the basic protections in place, losses could probably have been avoided.
Nathan McCauley, CEO and Co-founder of Anchorage Digital, highlighted the importance of the initiative, saying, “More than ever, nascent protocols and blockchains need support in secure code and auditing practices. Growth and adoption depend on it, and that’s why we’re joining the BSSC to collaborate as an industry towards a safer tomorrow.”
Voluntary Standards Are “Critical”
Kraken’s Chief Security Officer, Nick Percoco, emphasized the role of voluntary security standards in the industry’s development, stating, “Establishing voluntary security standards is a critical component of crypto’s maturation. Industry players collaborating to build a stronger overall ecosystem can only help in driving confidence in the overall asset class.”
Halborn Co-Founder and CEO Rob Behnke recognized the critical need for robust security standards, noting, “The formation of the Blockchain Security Standards Council is a pivotal step in uniting the industry to combat escalating security threats.”
Beyond setting standards, the BSSC plans to engage with regulators and policymakers to inform them about their efforts and collaborate on consumer protection while fostering innovation within the blockchain sector. The council also aims to expand its membership in the coming months, with the goal of publishing its initial standard and launching the accompanying audit scheme by the end of 2024.
