Crypto Security | What Is Crypto Security and How Does It Work? (2024)

Robust security

Security is in our DNA. Our number one priority is to protect you, your money, and your information. Security is built into our systems and culture.

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Security is in our DNA. We obsess about it. Our top priority is to protect you, your money, and your information. Uphold is a community. We enforce stringent security standards across our platform - and continually educate ourcustomers on the important role they have to play.

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Access and Encryption

We deploy layered defenses to limit the scope and depth of potential attacks, as well as sophisticated encryption.

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Auditing & Testing

Security professionals routinely conduct security audits and penetration testing of our systems.

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3rd Party Due Diligence

All our providers undergo appropriate due diligence checks. Special attention is paid to integrations incorporating sensitive data.

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Personnel Standards

The Uphold team are background checked by an accredited vendor. Mandatory security and privacy training is conducted regularly.

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24/7 Overwatch

The Uphold Security Operations Centre monitors systems year-round and responds immediately to any detected threat.

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Bug Bounty Program

If you've found a security vulnerability in our platform, please report it to us via our public BugBountyprogram for a reward.

We work with a bug bounty platform called Intigriti.On this platform, you will find our public bug bounty program that is open to all here.

We only accept reportswithin the scope defined through the program.

We apply these and other security measures to protect youand your funds.

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Verify Yourself

Verifying your identity helps to keep your transactions secure.

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Strong Password

We maintain strong password requirements. We'll also do email verification if we detect anything untoward. If we detect unusual activity, we'll send you an email to verify it is you.

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Enable 2-factor authentication

We give you anextra level of protection in the event that your login and password get stolen or compromised.

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Scams and Phishing

Scams are designed to give bad actors access to your funds. They often involve someone passing as a legitimatecontact with whom you do business.

If you’re unsure an email is from us, please contact us here

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Using Your Device in a Public Place

Never leave your device unattended in a public place while you're logged in,and try to avoid public Wi-Fi. Never access or change your personal information in a public space. Always log out of your Uphold account.

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A Secure Connection

Make sure you use a secure internet connection when you access Uphold. Look out for the “https” at the beginning of the website address, as well as the padlock security symbol in the browser frame.

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Your Computer

You should install effective antivirus and anti-spy software, as well as turn on a firewall. Always ensure they are running when you use your computer.

Total Transparency. By Design.

Uphold's numerous patent-pending and proprietary technologies - including the Reserveledger™ and Reservechain™- vetted by regular independent audits, allow you to verify ourobligations, transaction flows, assets, and solvency. At any time, you can confirm our reserve holdings and ensure that your funds are safe. See for yourself below.

Go to transparency page

Committed to Compliance

As a FinCEN Registered Money Services Business (MSB) in the United States, and as an EMD Agent of an Electronic Money Issuer regulated by the FCA in the United Kingdom, Uphold is committed to compliance.

We implement robust KYC and Anti-Money Laundering controls to underpinour verification and identification processes and to identify suspicious activity. We’re committed to compliance with all applicable laws and regulations in the United States, Europe, and internationally.

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Customer, employee, member, business partner, and developer partner identification verification, and ongoing, real-time due diligence.

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Full compliance with Office of Foreign Assets Control (OFAC) regulations. Including real-time identification and investigation of unusual activity, and suspicious activity reporting.

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Currency transaction reports and other reporting requirements triggered by transaction volumes and specified activity patterns as articulated in the Bank Secrecy Act (BSA).

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Compliance with BSA record keeping requirements.

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Compliance with lawful requests for information from law enforcement with the authority to make such requests.

Uphold is passionately committed to securing customer accounts and protecting our customers' privacy and data at all times. Uphold has created technology to adhere to local, state, federal, and international law to protect Personally Identifiable Information (PII), and any personal data collected from our customers is done in accordance with the highest industry standards.

Go to privacy and data policy

We’re excited to announce that we’ve achieved SOC 2 Type 1 Certification, affirming our commitment to the highest standards of customer data security, confidentiality, and availability. This certification is a testament to our dedication to safeguarding our clients’ information and ensuring our systems are secure and reliable. Looking ahead, we’re aiming for SOC 2 Type 2 certification in Q2 2024, further strengthening our promise to uphold strict security protocols and processes, reinforcing our position as a trusted partner in protecting and managing your data.

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At Uphold, we understand that securing your information is fundamental to earning your trust. Achieving ISO 27001 certification, an international benchmark for data security underscores our ongoing commitment to earning that trust through stringent safeguards and operational excellence.

Why ISO 27001 Certification Matters

ISO 27001 outlines the requirements for establishing, implementing, maintaining, and continually improving an information security management system (ISMS) with the following benefits.

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Enhanced Data Protection: ISO 27001 mandates robust security controls, fortifying our defenses against data breaches and cyberattacks.

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Legal and Regulatory Compliance: Compliance with ISO 27001 assures you that we are committed to meeting industry-specific regulations and legal obligations.

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Customer Trust: Our certification is a mark of assurance, demonstrating our commitment to safeguarding your data and maintaining your trust.

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Continuous Improvement:ISO 27001 requires us to continually assess and enhance our information security practices to stay ahead of emerging threats.

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PCI/DSS is a set of requirements created by the major payment card brands (Visa, MasterCard, American Express, Discover and JCB), designed to ensure that ALL companies that process, store or transmit credit card information maintain a secure environment. Its primary focus is to improve payment account security throughout the transaction process and it is administered and managed by an independent body, the Payment Card Industry Security Standards Council.

Uphold is a pioneer in our space when it comes to the security of our consumers: we are one of the first companies working with digital currencies to become certified to PCI/DSS, one of the most stringent security standards in the industry. Being compliant means that we are doing our very best to keep our members' valuable information secure and out of the hands of people who could use that data in a fraudulent way.

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Crypto Security | What Is Crypto Security and How Does It Work? (2024)

FAQs

How does crypto security work? ›

Crypto Exchange Security: Exchange security includes measures to protect user accounts, secure storage of assets, two-factor authentication (2FA), anti-money laundering (AML) and know-your-customer (KYC) procedures, regular security audits, and adherence to regulatory standards.

What is the very best explanation of how crypto works? ›

Cryptocurrency is digital money that doesn't require a bank or financial institution to verify transactions and can be used for purchases or as an investment. Transactions are then verified and recorded on a blockchain, an unchangeable ledger that tracks and records assets and trades.

What does it mean if crypto becomes a security? ›

If the SEC determines a cryptocurrency or token is a security and falls under its regulatory purview, this will have far-reaching implications for those involved. The issuer may face stricter regulatory requirements and compliance burdens.

Is it better to keep crypto in wallet or exchange? ›

Crypto exchanges allow you to withdraw crypto into your own possession. As long as this is possible, there is always the chance that an attacker can transfer your crypto into their own hands. The best way to protect yourself against this threat is to move your crypto into your own wallet.

How do I make sure my crypto is safe? ›

Use two factor authentication for your exchange

2FA requires you to input a code from your phone every time you make a crypto withdrawal. If you don't have 2FA enabled, you have to rely on the security of your email address and password to protect your crypto – reducing your protection against cyber criminals.

How do you know if a crypto is a security? ›

How do we determine whether a crypto asset is, in substance, a security? The answer: Generally, we must apply the so-called “Howey test,” on a case by case basis, to determine whether a particular crypto asset is a security. Under the three-part “Howey test”—which is named after a U.S. Supreme Court case, SEC v.

Can cryptocurrency be converted to cash? ›

Yes, Bitcoin can be converted into cash by selling it on a cryptocurrency exchange or through peer-to-peer transactions. You can also transfer Bitcoin to another person or wallet by sending it to their Bitcoin address.

How does crypto work step by step? ›

Units of cryptocurrency are created through a process called mining, which involves using computer power to solve complicated mathematical problems that generate coins. Users can also buy the currencies from brokers, then store and spend them using cryptographic wallets.

How do you actually use crypto? ›

To pay with crypto, you need to first buy some. Then, you use your wallet to enter the recipient's address and send it to them. Several online retailers and some brick-and-mortar stores allow users to pay with cryptocurrency wallets.

Why can't crypto be a security? ›

The Securities and Exchange Commission's primary theory on whether a cryptoasset is a security appears to be based upon whether the blockchain project associated with a cryptoasset is, at any point in time, “sufficiently decentralized.”[2] If so, the cryptoasset is not a security.

Why are so many crypto exchanges banned in the US? ›

The lack of a clear crypto regulation framework is the main reason why crypto exchanges are being banned in the United States, even if they were established in it.

Is every crypto a security? ›

The U.S. Securities and Exchange Commission takes the position that nearly all cryptocurrencies are securities, with bitcoin the only known exception. The classification of cryptocurrencies as securities has significant implications for their regulation.

What is the most secure crypto? ›

Top 10 Safest Digital Assets
  • 8) Polygon (MATIC) ...
  • 7) Polkadot (DOT) ...
  • 6) Cosmos (ATOM) ...
  • 5) Chainlink (LINK) ...
  • 4) Solana (SOL) ...
  • 3) Cardano (ADA) ...
  • 2) Ethereum (ETH) Ethereum (ETH) is the second largest cryptocurrency by market cap, following Bitcoin (BTC). ...
  • 1) Bitcoin (BTC) The most safe digital asset is Bitcoin.

What is the safest exchange to store crypto? ›

Best Most Secure Bitcoin and Crypto Exchanges in 2024
  • #1. Binance. 4.83 / 5. promotions. ...
  • #2. Blockchain.com. 4.83 / 5. promotions. ...
  • #3. LBank. 4.83 / 5. promotions. ...
  • #4. Binance TR. 4.67 / 5. promotions. ...
  • #5. BitMEX. 4.67 / 5. promotions. ...
  • #6. MEXC. 4.67 / 5. promotions. ...
  • #7. Okcoin. 4.67 / 5. promotions. ...
  • #8. OKX. 4.67 / 5. promotions.
Jan 30, 2024

Which is the best wallet to store crypto? ›

Best Crypto Hot Wallet Reviews
  • Best for Beginners: Coinbase Wallet. Our Partner. ...
  • Best for Ethereum: MetaMask. Learn More.
  • Best for Mobile: Trust Wallet. ...
  • Best Desktop Bitcoin Wallet: Electrum. ...
  • Best Mobile Bitcoin Wallet: BlueWallet. ...
  • Best for Desktop: Exodus. ...
  • Best DeFi Wallet: Crypto.com. ...
  • Best Cold Wallet for Beginners: KeepKey.
May 2, 2024

Is crypto security safe? ›

Cryptocurrencies are still largely unregulated

If a platform that exchanges or holds your crypto assets goes bankrupt, there's a risk you could lose all your capital. Similarly, your assets could be at risk if an exchange holding your crypto is hacked by criminals.

Is your money protected in crypto? ›

This means if you deposit your money in a member bank, the FDIC will insure up to $250,000*. There are no such organizations that protect against crypto losses. If you lose your crypto, there is no recovery or protection option.

How secure are crypto payments? ›

A cryptocurrency is a digital or virtual currency secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Most cryptocurrencies exist on decentralized networks using blockchain technology—a distributed ledger enforced by a disparate network of computers.

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