2022-05-31-普华永道-Safeguarding_crypto_holdings_–_considerations_for_private_businesses_4页_1mb

Safeguarding Crypto Holdings – Key Considerations for Private Businesses

This report discusses the growth and risks of digital assets such as cryptocurrencies and non-fungible tokens (NFTs), emphasizing the importance of safeguarding these holdings. Since 2020, these markets have experienced significant development, but price volatility presents challenges. Businesses must consider steps to protect digital assets from fraud and theft, as these risks are just as critical as traditional assets.

Key considerations include conducting due diligence on business partners and counterparties to identify red flags. For instance, inadequate controls, like at QuadrigaCX, can lead to losses due to mismanagement. Specific factors to evaluate are the regulatory status of exchanges, their history of scrutiny, and associations with negative news.

Robust internal controls are essential, such as using multisig wallets for multi-user authentication to secure large-value transactions. Access rights to third-party services like exchanges should be managed carefully. A cost-benefit analysis may determine appropriate responses, including developing pre-planned investigation frameworks to handle theft or fraud, potentially involving specialists for legal and investigative support.

Additionally, businesses should identify key contacts for unforeseen issues, ensuring preparedness for recovery through civil actions, law enforcement, or insurance. As markets face stress, proactive risk management, including reassessing controls and diligence, is crucial for business protection.

Concluding, preparing organizations to address fraud and economic crime risks protects against potential losses in the evolving digital asset environment.