CertiK has urged cryptocurrency exchanges to impose hard dollar limits on hot-wallet holdings, according to an exclusive report by Cointelegraph.

The recommendation follows Binance’s security breach, prompting exchanges to disclose how much customer cryptocurrency they keep offline.

“Cold storage is a useful measure of online exposure, but it is not a standalone security score,” CertiK’s research team said.

CertiK recommends calculating hot-wallet limits using customer liabilities, expected withdrawals and each exchange’s ability to absorb losses.

“Flexibility should support operating liquidity, while hard dollar ceilings and circuit breakers limit potential loss,” the research team said.

The proposed framework would establish…