An organization that combats corporate fraud will issue guidance for firms using blockchain technology.
The Committee of Sponsoring Organizations of the Treadway Commission (COSO), commonly referred to as the Treadway Commission, will issue guidance to strengthen controls over uses of blockchain in supply chain management and financial services.
The Wall Street Journal reported first on the guidance, which is due in the first quarter of 2020.
The Treadway Commission was founded in 1985 to advise on corporate governance and risk management in the private sector. Its recommendations are opt in and serve to provide “reasonable security.”
In a report Dec. 17, COSO said that as companies adopt new technologies including blockchain, artificial intelligence and cloud computing, cyber attackers “will take advantage of new vulnerabilities that allow information systems and controls to be exploited.”
The report cites hackers demanding ransoms paid in cryptocurrency.
“[C]yber risks cannot be avoided, but such risks can be managed through careful design and implementation of appropriate responses and recovery processes,” COSO writes.
Paul Sobel, COSO’s chairman, told the Journal it’s a “very different view of the world” when companies use distributed ledgers because control over the database isn’t maintained internally.
The organization did not respond to a request for comment.
Read more about
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.