CertiK Recommends Crypto Exchanges Set Dollar Holding Limits for Hot Wallets

On November 10, the CertiK research team recommended that cryptocurrency exchanges set clear dollar holding limits for hot wallets to enhance security. This suggestion was made following an attack on Binance's hot wallet, aimed at boosting user confidence. Several exchanges have disclosed their cold wallet reserve ratios, with Gate stating that 88.26% of its total assets are held in cold wallets, while Coinbase claims that over 99% of customer assets are offline. CertiK pointed out that the cold storage ratio can reflect the degree of asset exposure online, but it cannot be used as a standalone security rating. While increasing the proportion of cold wallets helps reduce online risks, further increases yield limited benefits when the ratio is already high, and overly rigid storage ratios may affect withdrawal speeds, concentrating risks in the key management system. CertiK recommends that exchanges set hot wallet limits based on different assets and blockchains, while also considering customer liability ratios, estimated withdrawal demands, and absolute loss limits to ensure operational liquidity and limit potential losses.

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