Discussion on Crypto Assets Security and Regulatory Issues

Exchange Account Security from a Technical Perspective

Exchange account security mainly involves the protection of user login status ( cookie ). Browser plugins have high privileges and can access all data from the website, including user cookies. To prevent cookie theft, exchanges can set additional verification fields in the request headers, rather than relying solely on cookies. Users should avoid installing browser plugins from unknown sources and check the source code if necessary.

Asset Storage Strategies

The method of asset storage depends on individual risk preferences, asset scale, and trading frequency. Wallets that hold private keys offer the highest security, but sacrifice some convenience. For users with larger assets and infrequent trading, using a wallet is more suitable. Choosing to store assets with an exchange means entrusting the private keys to the exchange, with security completely relying on the exchange's security system.

It is recommended to take the following measures:

• Use a cold and hot wallet separation strategy
• Use multi-signature technology
• Use dedicated devices for large transactions
• Choose a large, reputable exchange
• Enable all available security settings
• Beware of phishing websites and fraudulent information
• Regularly audit accounts and asset security

The Security Challenges Posed by AI Face-Swapping Technology

Deepfake technology is becoming a common means of cyber attacks. In response to such authentication bypass attacks, exchanges should not rely solely on single facial recognition but should combine it with SMS and other two-factor authentication methods to establish a comprehensive facial defense system. When security settings are reset, exchanges should at least restrict related operations for 24 hours and notify users.

Asset Protection in Daily Trading

• Avoid performing high-risk on-chain operations on mobile devices
• Carefully check the link domain and be vigilant about easily confused characters.
• Monitor wallet responses and be alert to unusual operation requests
• Use plugins like "ScamSniffer" and "WalletGuard" to detect phishing websites
• Use the social media mutual attention feature to determine account authenticity
• Be cautious of suspicious operations and do not rush to act.
• Use a virtual machine to operate high-risk websites
• Pay attention to the permissions required by browser plugins.
• Log out of the exchange account after each use

Regulatory Intervention in a Decentralized World

As the industry develops, compliance has become crucial. Moderate regulation helps attract more investors and promotes sustained growth in the industry. Regulation should cover OTC and centralized exchanges, enhance asset transparency, and aid in tracking stolen assets. The collaborative efforts of judicial authorities, exchanges, and security companies are essential for protecting user assets. However, regulation should not overly interfere with on-chain transactions and must seek a balance between protecting users and maintaining the spirit of decentralization.