Great Britain’s security firm, G4S, is foraying into the cryptocurrency sector despite sluggishness in the overall market. The company is introducing a fresh digital coin storage service. The firm believes that it has already been handling storing of cash for large enterprises and their service on a virtual asset is an extension to that.
Protection from Criminals
The FTSE 250 firm indicated that its custody service would protect the cryptocurrencies from criminals, who are focusing on the emerging asset class in the current year. The move assumes significance since institutional investors have often pointed out the lack of secure storage solutions to invest in cryptocurrencies. The institutions have considered this to be one of the primary barriers as cybercriminals are targeting the new age digital instrument.
Significantly, G4S disclosed that already a European-based cryptocurrency exchange is using its services though it did not name it. The company’s senior risk analyst in risk consulting division, Dominic MacIver, pointed out that the digital coin sector is experiencing the same age-old threats that financial systems have undergone. This included scammers, robbers, and market manipulators besides others. Criminals have also resorted to individual kidnapping to extort their cryptos.
MacIver said that
“Our innovative security solution helps protect against some of those threats by taking the assets offline and storing them in high-security vaults.”
According to an estimate of the American cybersecurity firm, Carbon Black, approximately $1.1 billion have already been stolen from cryptocurrency in the first six months of the current year. This included the $500 million hacking of Coincheck, a Japanese exchange, in January. It is not an easy to trace stolen coins since most of them are held anonymously.
The British security firm foraying into crypto is based on the trends that the traditional players are keen to enter the space without compromising their other activities. For instance, Fidelity Investments disclosed its intention of providing “enterprise quality custody” of digital coins to institutions apart from trading services. Similarly, Nomura indicated in May that it was creating custody services while some of the leading financial service providers are exploring similar options.