Security Framework
Security & Compliance
Zero-trust security architecture with cryptographic proof of reserves and continuous on-chain monitoring. Our compliance framework operates in full alignment with UAE financial regulations and international standards.
Security Architecture Layers
Hardware Security Modules
Private keys are generated and stored exclusively within FIPS 140-2 Level 3 certified hardware security modules. Keys never leave the HSM boundary, and all cryptographic operations occur within tamper-resistant hardware.
Multi-Signature Wallets
All hot and warm wallets require multiple cryptographic signatures from geographically distributed key holders. Threshold signatures ensure no single point of failure while maintaining operational efficiency.
Cold Storage Protocol
Majority of assets are held in cold storage with air-gapped systems. Private keys are generated offline and stored in secure facilities with physical access controls and environmental monitoring.
Network Security
All network communications are encrypted with TLS 1.3. Internal systems operate on isolated networks with strict firewall rules. Intrusion detection systems monitor for anomalous activity 24/7.
Compliance Framework
Regulatory Compliance
Al Ghurair International Exchange operates under the regulatory oversight of the UAE Central Bank. We maintain all required licenses and registrations for money exchange and digital asset services.
- • UAE Central Bank Money Exchange License
- • Anti-Money Laundering (AML) compliance program
- • Know Your Customer (KYC) verification framework
- • Counter-Terrorism Financing (CTF) screening
Transaction Monitoring
All transactions are screened in real-time against sanctions lists and monitored for suspicious patterns. Our compliance team reviews flagged transactions and files required reports with regulatory authorities.
- • Real-time sanctions list screening
- • Transaction pattern analysis
- • Automated risk scoring
- • Regulatory reporting automation
Audit & Reporting
Regular internal and external audits ensure compliance with all regulatory requirements. We maintain comprehensive audit trails of all transactions and system access for regulatory review.
- • Annual external compliance audits
- • Quarterly internal risk assessments
- • Immutable transaction audit logs
- • Regulatory examination support
Proof of Reserves
We maintain cryptographic proof of reserves through Merkle tree attestations. Our on-chain addresses are publicly verifiable, and we publish regular attestations demonstrating full reserve backing of client assets.
Merkle Tree Attestation
Client balances are aggregated into a Merkle tree structure. The root hash is published on-chain, allowing clients to verify their inclusion without revealing other balances.
On-Chain Verification
Our reserve addresses are publicly listed and can be verified on-chain. Total reserves exceed client liabilities with a maintained buffer for operational security.
Third-Party Attestation
Independent auditors verify our reserve holdings and attest to the accuracy of our proof-of-reserves methodology. Attestation reports are published quarterly.
Real-Time Monitoring
Continuous monitoring of on-chain reserve addresses ensures immediate detection of any discrepancies. Automated alerts notify compliance and operations teams of any anomalies.
Risk Management
Operational Risk
Redundant systems and failover procedures ensure continuous operations. Regular disaster recovery testing validates our ability to maintain service during infrastructure failures.
Counterparty Risk
We maintain strict counterparty limits and perform due diligence on all partners. Smart contract interactions are audited before deployment, and we use time-locked multi-signature controls for high-value operations.
Market Risk
Real-time monitoring of market conditions and automated position limits protect against excessive exposure. Our treasury management maintains appropriate reserve ratios across different digital assets.