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Crypto Regulation

CertiK Urges Hard Dollar Caps on Crypto Exchange Hot Wallets

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.

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AI take

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.

Generated by AI for reference only.

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