TCEX Launches Three-Tier Security Architecture Model to Comprehensively Fortify Crypto Asset Protection
TCEX unveiled its three-tier security architecture model at the “Future of Crypto Assets and Digital Financial Markets” conference, aiming to strengthen investor asset protection and enhance market confidence.
TCEX stated that, drawing on international market best practices, it developed an investor-centric, system-protection-focused three-tier security architecture model.
The first tier of security focuses on infrastructure and system security, designed to prevent external intrusions and ensure the platform’s continuous operation. According to the company, the system is built in accordance with Level-4 information security standards, incorporating multi-layered safeguards such as network segmentation, data encryption, and access control. A 24/7 security operations center detects anomalies in real time, and independent agencies conduct regular testing on the system to evaluate and remediate potential vulnerabilities.
The first layer serves to protect the “house” from external factors.
The second tier covers asset custody and protection mechanisms. TCEX declared that customer assets are completely segregated from exchange assets. The majority of assets are stored in cold wallets, while hot wallets hold only the necessary amount required for trading liquidity. Private keys are managed using Multi-Party Computation (MPC) technology combined with multi-signatures to mitigate the risk of a single individual or single point of failure controlling the assets. The company also employs a Proof of Reserves (PoR) mechanism and undergoes independent audits to ensure it can fully meet its obligations to investors.
The second layer serves to segregate assets between the managing entity and investors.
The third tier of protection focuses on legal compliance and financial crime prevention. Investor identities are verified through an electronic Know Your Customer (eKYC) process that integrates biometric technology and real-time verification. Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) systems are deployed to screen sanctioned entities and monitor transactions in real time.
The third layer aims to ensure the transparency of cash flows.
Vietnam crypto exchange TCEX believes that trust is the core factor driving the development of the cryptocurrency market. Therefore, establishing consistent security standards, regulatory mechanisms, and compliance frameworks is essential for the market to operate transparently, securely, and sustainably in its new phase of growth.