UK-based fintech Coincover has raised USD 30 million and plans to use the funds to improve its digital asset protection capabilities. The funding round was led by Silicon Valley venture capital outfit Foundation Capital.

Coincover specialises in helping companies protect their digital assets such as cryptocurrencies by combating hacking and preventing human error. Founded in 2018, the company currently has more than 300 clients according to altfi. com, including exchanges, wallets, hedge funds, family offices, and banks.

Regarding the funding round, Coincover representatives cited by the same source emphasised the growing trend among crypto holders to safeguard their digital assets, which is causing a high demand for their business. They also revealed that they plan to use the new funds to improve their service for all existing and future customers while contributing to a better and more mature digital asset ecosystem. Crypto hacks have hit a new record According to standard.

co. uk citing research by Chainalysis, as much as USD 3. 8 billion was stolen over the course of 2022, with large spikes in March and October across several dozen major hacking incidents.

To be specific, North Korea-linked groups were the most prolific cryptocurrency hackers in 2022, as the groups managed to break their own records for theft, stealing an estimated USD 1. 7 billion worth of cryptocurrency across several hacks. Chainalysis experts revealed that the transparent nature of crypto transactions represents a clear vulnerability of decentralised finance, as hackers can scan DeFi code for vulnerabilities and strike at the ideal time in order to make the most out of their attack.

They also urged decentralised finance businesses to ramp up their cybersecurity plans in order to increase their chances of preventing a cyber-attack. They also emphasised that safe growth is more important than growth at all costs and that implementing quality protocols should become a priority. In this context, new rules are set to be introduced for crypto trading platforms in addition to a stricter regime for crypto lending.

Crypto activity, rather than crypto assets themselves, will be subject to the new rules, according to a new paper launched by the UK government in February 2023. The paper mentions the FTX meltdown as one of the primary reasons for the implementation of tougher cryptocurrency regulation. Government representatives expressed that mitigating crypto risks will require prudential safeguards, operational risk controls, transparency and data reporting arrangements, as well as measures to manage conflicts of interest, good governance, and adequate record keeping.

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