General Security Considerations for Crypto Assets Custodians
draft-vcgtf-crypto-assets-security-considerations-02

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Network Working Group                                            M. Sato
Internet-Draft                                               M. Shimaoka
Intended status: Informational                             SECOM IS Lab.
Expires: January 26, 2019                               H. Nakajima, Ed.
                                                             Mercari R4D
                                                           July 25, 2018

      General Security Considerations for Crypto Assets Custodians
          draft-vcgtf-crypto-assets-security-considerations-02

Abstract

   This document discusses technical and operational risks of crypto
   assets custodian and its security controls to avoid the unintended
   transactions for its customers.

Status of This Memo

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   provisions of BCP 78 and BCP 79.

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   This Internet-Draft will expire on January 26, 2019.

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   Copyright (c) 2018 IETF Trust and the persons identified as the
   document authors.  All rights reserved.

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Sato, et al.            Expires January 26, 2019                [Page 1]
Internet-DraGeneral Security Considerations for Crypto Assets  July 2018

Table of Contents

   1.  Introduction  . . . . . . . . . . . . . . . . . . . . . . . .   3
   2.  Scope of this document  . . . . . . . . . . . . . . . . . . .   3
   3.  Conventions and Definitions . . . . . . . . . . . . . . . . .   4
   4.  Terminology . . . . . . . . . . . . . . . . . . . . . . . . .   4
   5.  Basic description of a model online system of a crypto assets
       custodian . . . . . . . . . . . . . . . . . . . . . . . . . .   4
     5.1.  General . . . . . . . . . . . . . . . . . . . . . . . . .   4
     5.2.  A basic model of online system of a crypto assets
           custodian and its functional components . . . . . . . . .   4
     5.3.  The flow leading to the sending of the transaction  . . .   6
     5.4.  Types of keys that are used for signature and encryption    6
       5.4.1.  Type of keys  . . . . . . . . . . . . . . . . . . . .   6
       5.4.2.  Flow for the key generation and the key usage . . . .   7
       5.4.3.  On the usage of multiple keys . . . . . . . . . . . .   8
       5.4.4.  On the suspension of keys . . . . . . . . . . . . . .   8
     5.5.  On the characteristics of crypto assets on Blockchain and
           distributed ledger technologies . . . . . . . . . . . . .   8
       5.5.1.  The importance of the private key used for signing  .   8
       5.5.2.  Diversity of implementations  . . . . . . . . . . . .   8
       5.5.3.  On the possibility of the forking of the Blockchain .   8
       5.5.4.  Risk on the unapproved transactions . . . . . . . . .   8
   6.  Basic objectives for the security management of crypto assets
       custodians  . . . . . . . . . . . . . . . . . . . . . . . . .   9
   7.  Approaches to basic security controls . . . . . . . . . . . .   9
   8.  Risks of Crypto Assets Custodian  . . . . . . . . . . . . . .  11
     8.1.  About this section  . . . . . . . . . . . . . . . . . . .  11
     8.2.  Risks related to the system of the crypto assets
           custodian . . . . . . . . . . . . . . . . . . . . . . . .  11
       8.2.1.  Risks related to signing keys . . . . . . . . . . . .  12
       8.2.2.  Risks related to asset data . . . . . . . . . . . . .  18
       8.2.3.  Risks related to suspension of systems and operations  18
     8.3.  Risks from external factors . . . . . . . . . . . . . . .  20
       8.3.1.  Risks related to the Internet infrastructure and
               authentication infrastructure . . . . . . . . . . . .  20
       8.3.2.  Troubles due to block chains of crypto assets . . . .  20
       8.3.3.  Risks arising from external reputation databases  . .  21
     8.4.  Financial Crime Risks . . . . . . . . . . . . . . . . . .  22
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