• Vitalik Buterin urges crypto exchanges to prioritize cybersecurity over market share and growth. 
  • Buterin noted recent crypto hacks hit web interfaces, not smart contract code.
  • He foresees exchanges adopting “bunker mode,” favoring security over fast growth.

Ethereum co-founder Vitalik Buterin thinks crypto exchanges should quit chasing market share and growth, and instead concentrate on surviving the rising threat of cyberattacks.

In an interview, he warned that the next two years could be particularly important for exchanges, custodians, and other crypto institutions, since hackers are increasingly going after centralized infrastructure.

Buterin pointed out that most big crypto hacks over the last year and a half targeted website interfaces and centralized systems instead of code bugs in smart contracts. Even though attacks still happen, he believes the core blockchain technology and smart contracts are much safer today.

He foresees exchanges and wallet providers stepping into a defensive “bunker mode” that focuses on locking down security instead of chasing fast growth. In practice, it means requiring stricter approval steps and using multi-signature setups. This could also include cutting back on vulnerable centralized systems.

Follow us on X for real-time crypto updates. 

Could More Hacks Lead to Stricter Crypto Regulations?

Additionally, Ethereum’s co-founder warned that government regulators will step in if large hacks keep happening. He argued that companies holding people’s funds need to take far more responsibility for protecting it, particularly when stolen crypto goes toward funding North Korean operations.

Buterin suggested that exchanges move more of their operations directly onto the blockchain, where smart contracts offer stronger built-in protections against tampering and fraud.

Interestingly, when asked about Ethereum’s growth roadmap in India, Buterin stated that the Ethereum Foundation prefers to handle what it does best from a technical standpoint while letting the community deal with things outside its expertise. He believes that the path for Ethereum’s growth in India is ultimately in the hands of the Indian people.

The co-founder also touched on Lean Ethereum, a set of planned upgrades designed to make the network faster, safer, and more decentralized. Key tools driving these improvements include zero-knowledge technology and AI.

Furthermore, Buterin urged Layer 2 networks to build unique services instead of just copying Ethereum’s speed improvements, pointing to high-performance DeFi and privacy tools as ideal areas for them to explore.

His warning comes after Binance lost $6.3 billion in a hack tied to the North Korean cyber group, TraderTraitor in October. 

Subscribe to our YouTube channel for the latest crypto news.

Related: AI Vulnerability is a Serious Threat to Crypto, Though Not Urgent—Vitalik Buterin

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.