Ciara Sun, head of global markets at Huobi Group, took part in a Cointelegraph China Great Bay Area International Blockchain Week pre-event interview on July 27. She stressed that although security and lack of infrastructure services might be the biggest hurdle for the crypto industry, more clarity in regulation across the globe has led to a great surge in institutional crypto investors.
Systemic risks in crypto market infrastructure
The biggest risk in the digital asset space, according to Ciara Sun, is hacking. She stressed that while hacking doesn’t typically lead to massive losses in traditional financial markets, the decentralized nature of digital currencies means there is almost no way to recover lost assets once they are stolen. She added that:
“Unlike banks, crypto exchanges simply act as ledgers for transactions. The actual assets are stored in cold wallets, so losses can be permanent if the keys are stolen. Traditional institutions also have very stringent requirements for insurance and escrow to protect users against losses, but the same can’t be said about many of the smaller crypto exchanges that operate in this space.”
According to Sun, Huobi crypto exchange has made security a priority. She notes that there have been no major security breaches at Huobi for 6+ years. She added an example that:
“We’ve launched an on-chain monitoring tool called Star Atlas to identity and detect illicit activities. Our security team will plan to reveal the security report in a regular routine in