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Why Shares of Diginex Are Up Today

By Bram Berkowitz – Aug 9, 2021 at 11:51AM

Key Points

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The digital asset financial services company received a nice designation relating to its security practices.

What happened

Shares of the Hong Kong-based cryptocurrency company Diginex (EQOS -25.00%) traded as much as 14% higher earlier this morning after the company announced that it had been awarded a key security certification.

So what

The company, which runs a cryptocurrency exchange called EQUOS, received the International Organisation for Standardisation (ISO) information security certification, ISO/IEC 27001:2013.

The certification goes to companies that show commitment to a strict set of information security standards and that follow an exhaustive audit of systems, policies, and processes that protect clients, while preserving and tracking how data across the organization is used. Diginex, which recently rebranded to EQONEX Group, is the first U.S. cryptocurrency company to obtain the certification.

"At EQONEX, our focus on providing an institutional-grade platform demands that clients' information is managed safely and securely," COO Jim Pollock said in a statement. "Therefore, we are pleased to receive independent confirmation that our information security framework is best practice. Today's news gives our clients confidence they are transacting on a trusted and secure platform."

Red squiggly line trending upward.

Image source: Getty Images.

Now what

Diginex has been volatile today and has given up much of its gains so far. The company has also struggled this year, down more than 60% year to date. In April, the firm Iceberg Research issued a short report on Diginex, citing "red flags" and an unreliable transaction history.

Perhaps this latest certification helps dispel some of the concerns cited in the short report. Being heavily in the cryptocurrency space, this is a stock that should benefit from the rise of crypto prices.

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Stocks Mentioned

Diginex Limited Stock Quote
Diginex Limited
$0.06 (-25.00%) $0.02

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