TREE NEWS reports: CertiK is calling for hard dollar caps on crypto exchanges’ hot wallets, arguing that cold storage alone is not an adequate security benchmark. “Cold storage is a useful measure of online exposure, but it is not a standalone security score,” the cybersecurity firm said. The recommendation pushes exchanges to limit the absolute value held in internet-connected wallets rather than relying solely on the share of funds kept offline.
CertiK Urges Hard Dollar Caps on Crypto Exchange Hot Wallets
The proposal shifts the security debate from a ratio—how much sits in cold storage—to an absolute exposure ceiling, a framing exchanges may resist because it constrains operational liquidity rather than just reporting. It matters most for venues that tout high offline percentages while keeping large hot-wallet balances for withdrawals. Whether regulators or exchanges adopt dollar-based caps, and how such limits would be enforced across varying exchange sizes, is the open question worth watching.
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