CoinSmart is one of the registered Money Services Business (MSB)with FINTRAC, as well as a securities dealer and marketplace with the Ontario Securities Commission (OSC). One of the main security feature introduced on CoinSmart to ensure the safety of users' accounts are:
- CoinSmart is using Sumsub for biometric verification (KYC) on every account, which is required by OSC regulations. Sumsub is able to prevent fraud by running a comprehensive identity verification process that is able to detect fake addresses and dates of birth using an extensive database. By using Sumsub, CoinSmart is able to verify a person’s identity and also keep personal user information secure.
- CoinSmart also has a mandatory two factor authentication (2FA). To enable this extra layer of security, users need to download the Google Authenticator app and connect it to their account (steps for this procedure can be found here). This will require the user to use a 6-digit code generated every 30 seconds on their phone when they attempt to log on with a username and password. They will then have to enter the newly generated code as an additional layer of security to log in to their account as well as to confirm any withdrawals.
- We are required to hold most of the assets in cold storage, you can review this in point 61 from our Terms & Conditions which you can find at the link here. Regardless of whether a user chooses to purchase a currency or not, there's a cold wallet available. This wallet is protected using standard industry practices and procedures. Cold storage of cryptocurrencies just refers to the practice of keeping these coins away from internet access (more info on Cold Storage could be found here). Most crypto exchanges will opt to keep a majority of their crypto in cold storage to keep it maximally protected against hacking attempts.