The current state of security in the cryptocurrency is, very frankly, terrifying. In the first half of 2025 only, $ 2.47 billion was lost against hacks. Yeah, you read well. And it is not only large companies that feel heat; Even the average user faces a portfolio and phishing attacks dam.
What is even more worrying is that the vulnerabilities of intelligent contracts are increasing. If we examine more than May 2025, it was a particularly bad month for violations. According to experts like Ronghui Gu, co-founder of Certik, violations of private keys have decreased, but the vulnerabilities of phishing and intelligent contracts evolve at a rapid pace. It is not only a statistical blip – the attackers become smarter.
Why does the current regulations do not cut it
Here is the kicker: existing regulatory frameworks for cryptocurrency are simply not equipped to manage this level of chaos. Monitoring is divided between Fincen, dry and CFTC, which leads to a disorderly jurisdictional patchwork. Each agency has its own program, and overlap often leads to confusion and gaps in the application.
What experts call a robust national framework that establishes a reference base for minimum standards. This would allow states to strengthen protections according to local risks. The Financial Stability Board echoes this feeling, emphasizing the need for complete policies that cover LMA, CFT and driving standards.
What should startups do?
So what can Finch startups do to keep away from the reticle? Here are some key protocols that they should think of the implementation:
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Zero-frust safety model: This approach “never trust, always to check”, requires constant authentication and authorization. It is a question of minimizing the threats of initiates.
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Multi-factory and biometric authentication: Stronger authentication methods considerably reduce the risk of identification theft.
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End -to -end encryption: We speak AES-256 for data at rest and TLS 1.3 for transit data. This should cover the databases, backups, APIs and communication channels.
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Threat detection fueled by AI: If you can predict an attack before it happens, you can prepare for it.
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Regular security audits: The current assessments are crucial to identify vulnerabilities before being exploited.
Having it in place could simply give startups a chance to fight against the assault of cyber-men.
Lessons from the past
Looking back on past crypto hacks is a gold mine to learn to strengthen security in decentralized organizations. Take bybit in 2025, where hackers left with $ 1.5 billion due to vulnerabilities in their Cold Wallet software.
Here are some lessons to note:
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Implement strong cryptographic controls: Use solid encryption standards and access to identity access to control access to blockchain nodes.
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Use blockchain analysis: Monitor the activity on the chain for unusual models.
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Perform regular security audits: Audit protocols and intelligent contracts before hitting the market.
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Prepare for the response to incidents: Have a data -based incident response plan ready for action.
Improved security in decentralized organizations
Decentralized organizations have a lot to gain lessons learned in past hacks. Here are some recommendations:
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Establish clear security protocols: Multi-signating portfolios and strict access controls are your friends.
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Improve collaboration: Federal and state regulators must work together, as are international organizations.
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Invest in cybersecurity training: Teach employees how to secure digital assets, emphasizing cold storage and multi-signating wallets.
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Adopt cybersecurity executives: Use established frames such as NIST to help manage risks.
All these steps could help decentralized organizations to strengthen a little more confidence in their platforms and reduce the chances of expensive violations.
