In an effort to bolster cyber defenses across the cryptocurrency landscape, Fireblocks, a prominent specialist in digital asset custody, has launched a new cybersecurity offering aimed at helping companies comply with the European Union’s Digital Operational Resilience Act (DORA). This legislation, which will take effect in January 2025, mandates that all financial entities, including crypto firms, enhance their resilience to cyber threats and operational disruptions.
With the rise in cyber attacks targeting the crypto industry—most notably highlighted by the recent large-scale hack of the Bybit exchange—this new initiative by Fireblocks comes at a critical time. Alex Jilitsky, the Cyber Governance, Risk, and Compliance (GRC) Director at Fireblocks, pointed out a significant challenge: DORA does not distinguish between the regulatory expectations placed on small fintech companies and those on larger banks. “It essentially says you need to be more resilient, not only to cyber attacks but also outages, disruptions, and technical failures,” Jilitsky stated.
“This new compliance package is designed to empower crypto firms to navigate the complex requirements set forth by DORA,” Fireblocks outlined in their recent press release.
The core features of Fireblocks’ Cyber and Operational Resilience (COR) compliance package include a dedicated legal addendum tailored to meet DORA specifications, periodic security reports to keep stakeholders informed, and an annual pooled security audit, marking a proactive step forward in ensuring the digital safety of crypto assets. As the landscape of cryptocurrency continues to mature, staying ahead of regulatory compliance and cybersecurity issues will be crucial for firms aiming to protect their assets and gain consumer trust.
Fireblocks Unveils Cyber Security Offering for DORA Compliance
Fireblocks has introduced a new cyber security service aimed at assisting firms in complying with the European Union’s Digital Operational Resilience Act (DORA). This act is pivotal for firms, including crypto companies, as it mandates a higher level of operational resilience against cyber threats and technical disruptions.
- DORA Implementation:
- DORA came into effect in January 2025 and aims to enhance the resilience of the financial sector against cyber threats.
- It applies to all financial entities, including smaller fintech and crypto companies, without distinguishing between them and larger banks.
- Cyber Security Vulnerability:
- Crypto companies are frequently targeted due to their digital nature, facing higher risks of cyber attacks compared to traditional finance sectors.
- The recent hack of Bybit exemplifies the critical need for robust security measures in the crypto space.
- Fireblocks’ Cyber and Operational Resilience (COR) Package:
- The package includes a dedicated legal addendum tailored for compliance with DORA.
- It provides periodic reports to enhance oversight and track resilience measures.
- Annual pooled security audits are part of the package, ensuring ongoing evaluation and improvement of security practices.
“One of the challenges for relatively small crypto firms and fintech companies is that DORA does not differentiate between these sorts of firms and large banks and financial institutions,” – Alex Jilitsky, Cyber GRC Director at Fireblocks.
This offering by Fireblocks could significantly impact small crypto businesses by helping them navigate regulatory requirements, thereby reducing risks associated with cyber attacks and enhancing their operational resilience. Compliance with DORA not only protects firms but also builds trust with customers and investors, which is crucial for long-term sustainability in the rapidly evolving crypto landscape.
Fireblocks Launches Cyber Security Offering to Meet DORA Compliance: A New Era for Crypto Firms
In a significant move within the crypto industry, Fireblocks has introduced a comprehensive cyber security solution aimed at assisting firms in adhering to the stringent requirements outlined in Europe’s Digital Operational Resilience Act (DORA). This new offering comes at a time when the crypto sector faces relentless cyber threats, as exemplified by the notable breach of Bybit, highlighting the precarious nature of digital assets. Fireblocks’ strategic introduction of its Cyber and Operational Resilience (COR) package puts it ahead of many competing services in the rapidly evolving landscape of crypto custody and security.
Competitive Advantages: Fireblocks’ solution offers several advantages that could easily set it apart from other providers. Firstly, the package is tailored specifically to meet DORA’s stringent regulations, a proactive step that could position Fireblocks as a leader in compliance-ready solutions in the crypto space. The inclusion of features such as a dedicated legal addendum and a streamlined annual pooled security audit can help instill confidence among clients who are keen on maintaining regulatory compliance without overwhelming administrative burdens. Furthermore, the periodic reporting feature ensures businesses remain vigilant and informed about their cyber resilience progress.
Potential Disadvantages: However, Fireblocks’ solution isn’t without its challenges. Smaller firms in the crypto sector, for instance, may find the compliance requirements imposed by DORA to be disproportionately burdensome. Unlike larger banks that have extensive resources, these smaller enterprises may struggle to adjust to the elevated operational standards, potentially leading to increased costs. Furthermore, if these companies cannot fully leverage or implement Fireblocks’ advanced security features, they might not realize the expected benefits from this investment, creating a gap in perceived value versus actual utility.
Who Benefits and Who Struggles? On one hand, well-established firms and larger financial institutions can greatly benefit from Fireblocks’ robust offering, as they are better positioned to absorb the complexities of DORA compliance. In contrast, smaller crypto firms and startups could face significant challenges. The lack of differentiation in regulatory requirements means that these entities must allocate resources—which might be scarce—towards compliance rather than innovation or expansion. Therefore, while Fireblocks is paving the way for enhanced security and operational resilience, the implications of DORA could paradoxically increase the barriers to entry for agile, smaller players in the market.
