In the cryptocurrency world, security is one of the most important considerations when buying or storing digital assets like Bitcoin. As of late, there have been a number of attacks on online exchanges and other vulnerabilities have also been exposed. Earlier this week, Binance, one of the most popular of such exchanges experienced a KYC data breach. Despite repeated denials from Binance, the stolen details of around 100,000 clients were found for sale on the dark web.
At Caleb and Brown, we recommend using a cold storage wallet to protect your Bitcoin and other cryptocurrency assets. Going forward, experts within the industry see custodial services as the “next major battleground”.
For those that have been negatively affected by hacks to online exchanges, we suggest seeking advice from a certified accountant. Alternatively, contact Caleb and Brown immediately for a professional tax assessment from our in-house cryptocurrency tax expert – you may be eligible for certain tax rebates.