CFOs and the Crypto Challenge: Why Cybersecurity is Non-Negotiable
Cryptocurrency continues its advance into the world of mainstream finance. Reports indicate that BNY is taking on additional services for Circle’s USDC stablecoin, while in Brazil, Stark Bank aims to support the country’s crypto startups. From high-profile investments by companies like Block and Strategy to small businesses experimenting with stablecoin transactions, digital assets are rapidly integrating into corporate finance strategies which include treasury management, cross-border transactions, and payment processing. However, as the saying goes, with opportunity comes risk. The trading platform Bybit, last month, suffered a $1.5 billion theft, an event considered the largest in the industry’s history. The message for Chief Financial Officers is clear: adopting crypto without a strong cybersecurity strategy is akin to leaving the vault open with a neon sign that says, “Take what you want.”
The Securities and Exchange Commission (SEC) set the tone for 2025 with its “Spring Sprint Toward Crypto Clarity,” an initiative designed to address pressing regulatory issues surrounding digital assets. The series will begin with a roundtable on March 21, titled “How We Got Here and How We Get Out — Defining Security Status.”
Cybersecurity must be a key area for corporate finance leaders to consider as they evaluate the feasibility of cryptocurrencies and stablecoins for their organizations.
Proactive Protection: The Modern CFO’s Strategy
CFOs navigating the digital asset landscape must create detailed cybersecurity strategies. The frequency of cyberattacks and the growing importance of “know your business” (KYB) compliance, along with the decentralized and pseudonymous nature of blockchain technology, make it especially attractive to fraudsters. CFOs need to realize that traditional cybersecurity measures are insufficient in protecting digital assets like cryptocurrency. The immutable nature of most crypto transactions means that fraudulent transactions often can’t be reversed, so recovering stolen funds is almost impossible. A robust cybersecurity strategy provides safeguards to stop unauthorized access and fraudulent activities.
So, what should CFOs do?
First, abandon the “wait-and-see” approach. CFOs must implement strong security practices immediately, including:
- Multi-signature wallets
- Cold storage
- Real-time transaction monitoring
Cryptocurrencies depend on digital wallets, which are vulnerable to hacking, malware, and insider threats. Private key management is key to protecting company assets. Employees handling crypto assets need cybersecurity training, and companies must partner with trusted custodians and exchanges that meet regulatory standards. Integrating cryptocurrency into corporate financial systems introduces new security threats. Without a comprehensive cybersecurity framework, companies risk exposing sensitive financial data and increasing the risk of cyberattacks.
Finance and technology grow ever more closely linked, so cybersecurity goes beyond IT; it’s a financial imperative. As governments introduce stricter regulations for crypto transactions, CFOs must ensure compliance with both cybersecurity and financial regulations. Implementing cybersecurity best practices (such as KYC and AML controls) can help prevent legal issues and penalties.
For instance, European cryptocurrency watchdogs are currently evaluating the OKX exchange, which is subject to the EU’s new Markets in Crypto Assets (MiCA) Regulation. Regulators are focused on the OKX Web3 service, which provides crypto traders access to a range of exchanges and blockchains.
In response to the rise of new security needs, the marketplace is evolving. Blockaid, for example, raised $50 million in a Series B funding round to meet the demand for its blockchain security platform. The company plans to expand product development, strengthen its engineering teams and improve its research capabilities.
A PYMNTS Intelligence report, “Cybersecurity Risks Cause Middle-Market CFOs to Cancel Innovation Plans,” found that only 44% of surveyed middle-market CFOs are currently investing in cybercrime protection.
