Reading view

There are new articles available, click to refresh the page.

Hong Kong Professionals Association Urges Regulators To Ease Crypto Reporting Rules

A Hong Kong industry group has urged the city’s regulators to ease aspects of the Organisation for Economic Co-operation and Development’s (OECD) crypto reporting rules ahead of its implementation.

Association Pushes To Soften CARF Requirements

On Monday, the Hong Kong Securities & Futures Professionals Association (HKSFPA) released a response to the implementation of the OECD’s Crypto Asset Reporting Framework (CARF) and the related amendments made to Hong Kong’s Common Reporting Standard (CRS).

In their official response, the association shared its concerns about certain elements of the CARF and CRS amendments, warning that they could create operational and liability risks for market participants.

Notably, the HKSFPA affirmed that it mostly supports the proposals, but urged regulators to ease the record-keeping requirements for dissolved entities. “We generally agree with the six-year retention period to align with existing inland revenue and CRS standards,” they explained, “but we have concerns regarding the obligations placed on individuals post-dissolution.”

The industry group argued that holding directors or principal officers personally liable for record-keeping after dissolution poses significant practical challenges, noting that former officers of dissolved companies may lack the resources, infrastructure, and legal standing to maintain sensitive personal data of former clients.

As a result, they suggested the government “allow for the appointment of a designated third-party custodian (such as a liquidator or a licensed corporate service provider) to fulfill this obligation, rather than placing indefinite personal liability and logistical burden on former individual officers.”

Moreover, the association also cautioned that the proposed uncapped per-account penalties for minor technical errors. They asserted that this could lead to “disproportionately astronomical fines for systemic software errors affecting thousands of accounts where there was no intent to defraud.”

To solve this, they proposed a “reasonable cap” on total penalties for unintentional administrative errors or first-time offenses to ensure that the per-account calculation “is reserved for cases of willful negligence or intentional evasion.”

Additionally, the group suggested a “lite” registration or a simplified annual declaration process for Reporting Crypto-Asset Service Providers (RCASPs) that anticipate filing Nil Returns, to reduce administrative costs while still satisfying the Inland Revenue Department’s oversight requirements.

Hong Kong’s Crypto Hub Efforts

Notably, Hong Kong is among the 76 markets committed to implementing the upcoming crypto reporting framework, which is the OECD’s new global standard for exchanging tax information on crypto assets.

The CARF is designed to prevent tax evasion by bringing crypto users across borders under global tax transparency rules, similar to the OECD’s existing CRS for traditional finance. Hong Kong will be among the 27 jurisdictions that will begin their first cross-border exchanges of crypto reporting data in 2028.

Over the past few years, Hong Kong financial authorities have been actively working to develop a comprehensive framework that supports the expansion of the digital assets industry, part of its strategy to become a leading crypto hub in the world.

As reported by Bitcoinist, the city is exploring rules to allow insurance companies to invest in cryptocurrencies and the infrastructure sector. The Hong Kong Insurance Authority recently proposed a framework that could channel insurance capital into cryptocurrencies and stablecoins.

Moreover, the Hong Kong Monetary Authority (HKMA) is expected to grant the first batch of stablecoin issuer licenses in the first few months of the year. The HKMA enacted the Stablecoins Ordinance in August, which directs any individual or entity seeking to issue a stablecoin in Hong Kong, or any Hong Kong Dollar-pegged token, to obtain a license from the regulator.

Multiple companies have applied for the license, with over 30 applications filed in 2025, including logistics technology firm Reitar Logtech and the overseas arm of Chinese mainland financial technology giant Ant Group.

crypto, bitcoin, btc, btcusdt

SOX Compliance and Its Importance in Blockchain & Fintech

5/5 - (1 vote)

Last Updated on October 8, 2025 by Narendra Sahoo

In the era where technology plays a core part in everything, fintech and blockchain have emerged as transformative forces for businesses. They not only reshape the financial landscape but also promise unparalleled transparency, efficiency and security as the world move forward to digital currency. That’s when you know being updated about SOX Compliance in Blockchain & Fintech are important than ever.

As per the latest statistics by DemandSage, there are around 29,955 Fintech startups in the world, in which over 13,100 fintech startups are based in the United States.  This shows how much business are increasingly embracing technology to innovate and address evolving financial needs. It also highlights the global shift towards digital-first solutions, driven by a demand for greater accessibility and efficiency in financial services.

On the other hand, blockchain technology, also known as Distributed Ledger Technology (DLT) is currently valued at approximately USD $8.70 billion in USA and is estimated to grow an impressive USD $619.28 billion by 2034, according to data from Precedence Research.

However, as this digital continues the revolution, businesses embracing these technologies must also prioritize compliance, security, and accountability. This is where SOX (Sarbanes-Oxley) compliance plays an important role. In today’s article we are going to explore the reason SOX Compliance is crucial for fintech and blockchain industry. So, lets get started!

 

Understanding SOX compliance

The Sarbanes-Oxley Act (SOX), passed in 2002, aims to enhance corporate accountability and transparency in financial reporting. It applies to all publicly traded companies in the U.S. and mandates strict adherence to internal controls, accurate financial reporting, and executive accountability to prevent corporate fraud.

To read more about the SOX you may check the introductory guide to SOX compliance.

The Intersection of SOX and Emerging Technologies

Blockchain technology and fintech solutions disrupt traditional financial systems by offering decentralized and automated alternatives. While these innovations bring significant benefits, they can also obscure transparency and accountability, two principles that SOX aims to uphold. SOX compliance focuses on accurate financial reporting, strong internal controls, and prevention of fraud, aligning with both the potential and risks of emerging technologies.

 Key reasons why SOX compliance matters

1. Ensuring accurate financial reporting

Blockchain technology is often touted for its transparency and immutability. However, errors in smart contracts, incorrect data inputs, or cyberattacks can lead to inaccurate financial records. SOX compliance mandates stringent controls over financial reporting, ensuring that organizations maintain reliable records even when leveraging blockchain.

2. Mitigating risks in decentralized systems

Fintech platforms and blockchain ecosystems often operate without centralized oversight, making it challenging to identify and address fraud or anomalies. SOX’s requirement for management’s assessment of internal controls and independent audits provides a critical layer of oversight, helping organizations address vulnerabilities in decentralized environments.

3. Building stakeholder trust

The trust of investors, customers, and regulators is paramount for fintech and blockchain companies. Adhering to SOX requirements demonstrates a commitment to transparency and accountability, promoting confidence among stakeholders and distinguishing compliant organizations from their competitors.

4. Addressing regulatory scrutiny

As blockchain and fintech solutions gain adoption, regulatory scrutiny is intensifying. SOX compliance ensures that organizations are prepared to meet these demands by maintaining rigorous financial practices and demonstrating accountability in their operations.

5. Adapting to hybrid financial models

Many organizations are integrating traditional financial systems with blockchain-based solutions. This hybrid approach can create gaps in controls and reporting mechanisms. Leveraging blockchain in compliance with SOX helps bridge these gaps by enforcing comprehensive internal controls that adapt to both traditional and innovative systems.

6. Promoting operational efficiency

By enforcing stringent controls and systematic processes, SOX compliance encourages better business practices and operational efficiency. This results in more accurate financial reporting, reduced manual interventions, and streamlined processes, which ultimately support better decision-making and resource allocation.

7. Future proofing against emerging technologies

Blockchain and fintech are continuously evolving, and organizations must adapt to new technologies. SOX compliance offers a flexible framework that can scale and evolve with these changes, ensuring that financial reporting and internal controls remain relevant and effective in the face of new technological challenges and opportunities.

Tips to get SOX compliant for fintech and blockchain companies


1. Understand SOX Requirements

  • Familiarize yourself with the key SOX sections, especially Section 302 (corporate responsibility for financial reports) and Section 404 (internal control over financial reporting).
  • Identify the specific areas that apply to your company’s financial reporting, internal controls, and auditing processes.

2. Form a Compliance Team

  • Assemble an internal team including executives, compliance officers, and IT staff.
  • Consider hiring external experts like auditors to guide the process.

3. Assess Current Financial Processes

  • Review existing financial systems, processes, and internal controls to identify gaps.
  • Document and ensure that these processes are auditable and compliant with SOX.

4. Implement Financial Reporting Systems

  • Automate financial reporting to ensure timely, accurate results.
  • Regularly conduct internal audits to confirm financial controls are working effectively.

5. Strengthen Data Security

  • Implement strong encryption, multi-factor authentication, and role-based access control (RBAC) to secure financial data.
  • Ensure regular backups and disaster recovery plans are in place.

6. Create and Document Policies

  • Develop formal policies for internal controls, financial reporting, and data handling.
  • Train employees on SOX compliance and ensure clear communication about financial responsibilities.

7. Establish Internal Control Framework

  • Build a solid internal control framework, focusing on accuracy, completeness, and fraud prevention in financial reporting.
  • Regularly test, validate controls and consider third-party validation for independent assurance.

8. Disclose Material Changes in Real-Time

  • Develop a process for promptly disclosing any material changes to financial data, ensuring transparency with stakeholders.

9. Prepare for External Audits

  • Engage an independent auditor to review your financial processes and internal controls.
  • Organize records and ensure a clear audit trail to make the audit process smoother.

10. Monitor and Maintain Compliance

  • Continuously monitor financial systems and internal controls to detect errors or fraud.
  • Review and update systems regularly to ensure ongoing SOX compliance.

11. Develop a Compliance Culture

  • Encourage a company-wide focus on SOX compliance, transparency, and accountability.
  • Provide regular training and leadership to instill a culture of compliance.

Conclusion

In the fast-paced era of blockchain and fintech, SOX compliance has evolved from a regulatory necessity to a strategic cornerstone. By driving accurate financial reporting, minimizing risks, and cultivating trust, it sets the stage for lasting growth and innovation. Companies that prioritize compliance and auditing standards don’t just safeguard their operation, but they also position themselves as forward-thinking leaders in the rapidly transforming financial landscape.

The post SOX Compliance and Its Importance in Blockchain & Fintech appeared first on Information Security Consulting Company - VISTA InfoSec.

EAST - Extensible Azure Security Tool - Documentation

By: Unknown


Extensible Azure Security Tool (Later referred as E.A.S.T) is tool for assessing Azure and to some extent Azure AD security controls. Primary use case of EAST is Security data collection for evaluation in Azure Assessments. This information (JSON content) can then be used in various reporting tools, which we use to further correlate and investigate the data.


This tool is licensed under MIT license.




Collaborators

Release notes

  • Preview branch introduced

    Changes:

    • Installation now accounts for use of Azure Cloud Shell's updated version in regards to depedencies (Cloud Shell has now Node.JS v 16 version installed)

    • Checking of Databricks cluster types as per advisory

      • Audits Databricks clusters for potential privilege elevation - This control requires typically permissions on the databricks cluster"
    • Content.json is has now key and content based sorting. This enables doing delta checks with git diff HEAD^1 ¹ as content.json has predetermined order of results

    ¹Word of caution, if want to check deltas of content.json, then content.json will need to be "unignored" from .gitignore exposing results to any upstream you might have configured.

    Use this feature with caution, and ensure you don't have public upstream set for the branch you are using this feature for

  • Change of programming patterns to avoid possible race conditions with larger datasets. This is mostly changes of using var to let in for await -style loops


Important

Current status of the tool is beta
  • Fixes, updates etc. are done on "Best effort" basis, with no guarantee of time, or quality of the possible fix applied
  • We do some additional tuning before using EAST in our daily work, such as apply various run and environment restrictions, besides formalizing ourselves with the environment in question. Thus we currently recommend, that EAST is run in only in test environments, and with read-only permissions.
    • All the calls in the service are largely to Azure Cloud IP's, so it should work well in hardened environments where outbound IP restrictions are applied. This reduces the risk of this tool containing malicious packages which could "phone home" without also having C2 in Azure.
      • Essentially running it in read-only mode, reduces a lot of the risk associated with possibly compromised NPM packages (Google compromised NPM)
      • Bugs etc: You can protect your environment against certain mistakes in this code by running the tool with reader-only permissions
  • Lot of the code is "AS IS": Meaning, it's been serving only the purpose of creating certain result; Lot of cleaning up and modularizing remains to be finished
  • There are no tests at the moment, apart from certain manual checks, that are run after changes to main.js and various more advanced controls.
  • The control descriptions at this stage are not the final product, so giving feedback on them, while appreciated, is not the focus of the tooling at this stage
  • As the name implies, we use it as tool to evaluate environments. It is not meant to be run as unmonitored for the time being, and should not be run in any internet exposed service that accepts incoming connections.
  • Documentation could be described as incomplete for the time being
  • EAST is mostly focused on PaaS resource, as most of our Azure assessments focus on this resource type
  • No Input sanitization is performed on launch params, as it is always assumed, that the input of these parameters are controlled. That being said, the tool uses extensively exec() - While I have not reviewed all paths, I believe that achieving shellcode execution is trivial. This tool does not assume hostile input, thus the recommendation is that you don't paste launch arguments into command line without reviewing them first.

Tool operation

Depedencies

To reduce amount of code we use the following depedencies for operation and aesthetics are used (Kudos to the maintainers of these fantastic packages)

package aesthetics operation license
axios
MIT
yargs
MIT
jsonwebtoken
MIT
chalk
MIT
js-beautify
MIT

Other depedencies for running the tool: If you are planning to run this in Azure Cloud Shell you don't need to install Azure CLI:

  • This tool does not include or distribute Microsoft Azure CLI, but rather uses it when it has been installed on the source system (Such as Azure Cloud Shell, which is primary platform for running EAST)

Azure Cloud Shell (BASH) or applicable Linux Distro / WSL

Requirement description Install
AZ CLI
AZCLI USE curl -sL https://aka.ms/InstallAzureCLIDeb | sudo bash
Node.js runtime 14
Node.js runtime for EAST install with NVM

Controls

EAST provides three categories of controls: Basic, Advanced, and Composite

The machine readable control looks like this, regardless of the type (Basic/advanced/composite):

{
"name": "fn-sql-2079",
"resource": "/subscriptions/6193053b-408b-44d0-b20f-4e29b9b67394/resourcegroups/rg-fn-2079/providers/microsoft.web/sites/fn-sql-2079",
"controlId": "managedIdentity",
"isHealthy": true,
"id": "/subscriptions/6193053b-408b-44d0-b20f-4e29b9b67394/resourcegroups/rg-fn-2079/providers/microsoft.web/sites/fn-sql-2079",
"Description": "\r\n Ensure The Service calls downstream resources with managed identity",
"metadata": {
"principalId": {
"type": "SystemAssigned",
"tenantId": "033794f5-7c9d-4e98-923d-7b49114b7ac3",
"principalId": "cb073f1e-03bc-440e-874d-5ed3ce6df7f8"
},
"roles": [{
"role": [{
"properties": {
"roleDefinitionId": "/subscriptions/6193053b-408b-44d0-b20f-4e29b9b67394/providers/Microsoft.Authorization/roleDefinitions/b24988ac-6180-42a0-ab88-20f7382dd24c",
"principalId": "cb073f1e-03b c-440e-874d-5ed3ce6df7f8",
"scope": "/subscriptions/6193053b-408b-44d0-b20f-4e29b9b67394/resourceGroups/RG-FN-2079",
"createdOn": "2021-12-27T06:03:09.7052113Z",
"updatedOn": "2021-12-27T06:03:09.7052113Z",
"createdBy": "4257db31-3f22-4c0f-bd57-26cbbd4f5851",
"updatedBy": "4257db31-3f22-4c0f-bd57-26cbbd4f5851"
},
"id": "/subscriptions/6193053b-408b-44d0-b20f-4e29b9b67394/resourceGroups/RG-FN-2079/providers/Microsoft.Authorization/roleAssignments/ada69f21-790e-4386-9f47-c9b8a8c15674",
"type": "Microsoft.Authorization/roleAssignments",
"name": "ada69f21-790e-4386-9f47-c9b8a8c15674",
"RoleName": "Contributor"
}]
}]
},
"category": "Access"
},

Basic

Basic controls include checks on the initial ARM object for simple "toggle on/off"- boolean settings of said service.

Example: Azure Container Registry adminUser

acr_adminUser


Portal EAST

if (item.properties?.adminUserEnabled == false ){returnObject.isHealthy = true }

Advanced

Advanced controls include checks beyond the initial ARM object. Often invoking new requests to get further information about the resource in scope and it's relation to other services.

Example: Role Assignments

Besides checking the role assignments of subscription, additional check is performed via Azure AD Conditional Access Reporting for MFA, and that privileged accounts are not only protected by passwords (SPN's with client secrets)

Example: Azure Data Factory

ADF_pipeLineRuns

Azure Data Factory pipeline mapping combines pipelines -> activities -> and data targets together and then checks for secrets leaked on the logs via run history of the said activities.



Composite

Composite controls combines two or more control results from pipeline, in order to form one, or more new controls. Using composites solves two use cases for EAST

  1. You cant guarantee an order of control results being returned in the pipeline
  2. You need to return more than one control result from single check

Example: composite_resolve_alerts

  1. Get alerts from Microsoft Cloud Defender on subscription check
  2. Form new controls per resourceProvider for alerts

Reporting

EAST is not focused to provide automated report generation, as it provides mostly JSON files with control and evaluation status. The idea is to use separate tooling to create reports, which are fairly trivial to automate via markdown creation scripts and tools such as Pandoc

  • While focus is not on the reporting, this repo includes example automation for report creation with pandoc to ease reading of the results in single document format.

While this tool does not distribute pandoc, it can be used when creation of the reports, thus the following citation is added: https://github.com/jgm/pandoc/blob/master/CITATION.cff

cff-version: 1.2.0
title: Pandoc
message: "If you use this software, please cite it as below."
type: software
url: "https://github.com/jgm/pandoc"
authors:
- given-names: John
family-names: MacFarlane
email: jgm@berkeley.edu
orcid: 'https://orcid.org/0000-0003-2557-9090'
- given-names: Albert
family-names: Krewinkel
email: tarleb+github@moltkeplatz.de
orcid: '0000-0002-9455-0796'
- given-names: Jesse
family-names: Rosenthal
email: jrosenthal@jhu.edu

Running EAST scan

This part has guide how to run this either on BASH@linux, or BASH on Azure Cloud Shell (obviously Cloud Shell is Linux too, but does not require that you have your own linux box to use this)

⚠️If you are running the tool in Cloud Shell, you might need to reapply some of the installations again as Cloud Shell does not persist various session settings.

Fire and forget prerequisites on cloud shell

curl -o- https://raw.githubusercontent.com/jsa2/EAST/preview/sh/initForuse.sh | bash;

jump to next step

Detailed Prerequisites (This is if you opted no to do the "fire and forget version")

Prerequisites

git clone https://github.com/jsa2/EAST --branch preview
cd EAST;
npm install

Pandoc installation on cloud shell

# Get pandoc for reporting (first time only)
wget "https://github.com/jgm/pandoc/releases/download/2.17.1.1/pandoc-2.17.1.1-linux-amd64.tar.gz";
tar xvzf "pandoc-2.17.1.1-linux-amd64.tar.gz" --strip-components 1 -C ~

Installing pandoc on distros that support APT

# Get pandoc for reporting (first time only)
sudo apt install pandoc

Login Az CLI and run the scan

# Relogin is required to ensure token cache is placed on session on cloud shell

az account clear
az login

#
cd EAST
# replace the subid below with your subscription ID!
subId=6193053b-408b-44d0-b20f-4e29b9b67394
#
node ./plugins/main.js --batch=10 --nativescope=true --roleAssignments=true --helperTexts=true --checkAad=true --scanAuditLogs --composites --subInclude=$subId


Generate report

cd EAST; node templatehelpers/eastReports.js --doc

  • If you want to include all Azure Security Benchmark results in the report

cd EAST; node templatehelpers/eastReports.js --doc --asb

Export report from cloud shell

pandoc -s fullReport2.md -f markdown -t docx --reference-doc=pandoc-template.docx -o fullReport2.docx


Azure Devops (Experimental) There is Azure Devops control for dumping pipeline logs. You can specify the control run by following example:

node ./plugins/main.js --batch=10 --nativescope=true --roleAssignments=true --helperTexts=true --checkAad=true --scanAuditLogs --composites --subInclude=$subId --azdevops "organizationName"

Licensing

Community use

  • Share relevant controls across multiple environments as community effort

Company use

  • Companies have possibility to develop company specific controls which apply to company specific work. Companies can then control these implementations by decision to share, or not share them based on the operating principle of that company.

Non IPR components

  • Code logic and functions are under MIT license. since code logic and functions are alredy based on open-source components & vendor API's, it does not make sense to restrict something that is already based on open source

If you use this tool as part of your commercial effort we only require, that you follow the very relaxed terms of MIT license

Read license

Tool operation documentation

Principles

AZCLI USE

Existing tooling enhanced with Node.js runtime

Use rich and maintained context of Microsoft Azure CLI login & commands with Node.js control flow which supplies enhanced rest-requests and maps results to schema.

  • This tool does not include or distribute Microsoft Azure CLI, but rather uses it when it has been installed on the source system (Such as Azure Cloud Shell, which is primary platform for running EAST)

Speedup

View more details

✅Using Node.js runtime as orchestrator utilises Nodes asynchronous nature allowing batching of requests. Batching of requests utilizes the full extent of Azure Resource Managers incredible speed.

✅Compared to running requests one-by-one, the speedup can be up to 10x, when Node executes the batch of requests instead of single request at time

Parameters reference

Example:

node ./plugins/main.js --batch=10 --nativescope --roleAssignments --helperTexts=true --checkAad --scanAuditLogs --composites --shuffle --clearTokens
Param Description Default if undefined
--nativescope Currently mandatory parameter no values
--shuffle Can help with throttling. Shuffles the resource list to reduce the possibility of resource provider throttling threshold being met no values
--roleAssignments Checks controls as per microsoft.authorization no values
--includeRG Checks controls with ResourceGroups as per microsoft.authorization no values
--checkAad Checks controls as per microsoft.azureactivedirectory no values
--subInclude Defines subscription scope no default, requires subscriptionID/s, if not defined will enumerate all subscriptions the user have access to
--namespace text filter which matches full, or part of the resource ID
example /microsoft.storage/storageaccounts all storage accounts in the scope
optional parameter
--notIncludes text filter which matches full, or part of the resource ID
example /microsoft.storage/storageaccounts all storage accounts in the scope are excluded
optional parameter
--batch size of batch interval between throttles 5
--wait size of batch interval between throttles 1500
--scanAuditLogs optional parameter. When defined in hours will toggle Azure Activity Log scanning for weak authentication events
defined in: scanAuditLogs
24h
--composites read composite no values
--clearTokens clears tokens in session folder, use this if you get authorization errors, or have just changed to other az login account
use az account clear if you want to clear AZ CLI cache too
no values
--tag Filter all results in the end based on single tag--tag=svc=aksdev no values
--ignorePreCheck use this option when used with browser delegated tokens no values
--helperTexts Will append text descriptions from general to manual controls no values
--reprocess Will update results to existing content.json. Useful for incremental runs no values

Parameters reference for example report:

node templatehelpers/eastReports.js --asb 
Param Description Default if undefined
--asb gets all ASB results available to users no values
--policy gets all Policy results available to users no values
--doc prints pandoc string for export to console no values

(Highly experimental) Running in restricted environments where only browser use is available

Read here Running in restricted environments

Developing controls

Developer guide including control flow description is here dev-guide.md

Updates and examples

Auditing Microsoft.Web provider (Functions and web apps)

✅Check roles that are assigned to function managed identity in Azure AD and all Azure Subscriptions the audit account has access to
✅Relation mapping, check which keyVaults the function uses across all subs the audit account has access to
✅Check if Azure AD authentication is enabled
✅Check that generation of access tokens to the api requires assigment .appRoleAssignmentRequired
✅Audit bindings
  • Function or Azure AD Authentication enabled
  • Count and type of triggers

✅Check if SCM and FTP endpoints are secured


Azure RBAC baseline authorization

⚠️Detect principals in privileged subscriptions roles protected only by password-based single factor authentication.
  • Checks for users without MFA policies applied for set of conditions
  • Checks for ServicePrincipals protected only by password (as opposed to using Certificate Credential, workload federation and or workload identity CA policy)

Maps to App Registration Best Practices

  • An unused credential on an application can result in security breach. While it's convenient to use password. secrets as a credential, we strongly recommend that you use x509 certificates as the only credential type for getting tokens for your application

✅State healthy - User result example

{ 
"subscriptionName": "EAST -msdn",
"friendlyName": "joosua@thx138.onmicrosoft.com",
"mfaResults": {
"oid": "138ac68f-d8a7-4000-8d41-c10ff26a9097",
"appliedPol": [{
"GrantConditions": "challengeWithMfa",
"policy": "baseline",
"oid": "138ac68f-d8a7-4000-8d41-c10ff26a9097"
}],
"checkType": "mfa"
},
"basicAuthResults": {
"oid": "138ac68f-d8a7-4000-8d41-c10aa26a9097",
"appliedPol": [{
"GrantConditions": "challengeWithMfa",
"policy": "baseline",
"oid": "138ac68f-d8a7-4000-8d41-c10aa26a9097"
}],
"checkType": "basicAuth"
},
}

⚠️State unHealthy - Application principal example

{ 
"subscriptionName": "EAST - HoneyPot",
"friendlyName": "thx138-kvref-6193053b-408b-44d0-b20f-4e29b9b67394",
"creds": {
"@odata.context": "https://graph.microsoft.com/beta/$metadata#servicePrincipals(id,displayName,appId,keyCredentials,passwordCredentials,servicePrincipalType)/$entity",
"id": "babec804-037d-4caf-946e-7a2b6de3a45f",
"displayName": "thx138-kvref-6193053b-408b-44d0-b20f-4e29b9b67394",
"appId": "5af1760e-89ff-46e4-a968-0ac36a7b7b69",
"servicePrincipalType": "Application",
"keyCredentials": [],
"passwordCredentials": [],
"OnlySingleFactor": [{
"customKeyIdentifier": null,
"endDateTime": "2023-10-20T06:54:59.2014093Z",
"keyId": "7df44f81-a52c-4fd6-b704-4b046771f85a",
"startDateTime": "2021-10-20T06:54:59.2014093Z",
"secretText": null,
"hint": nu ll,
"displayName": null
}],
"StrongSingleFactor": []
}
}

Contributing

Following methods work for contributing for the time being:

  1. Submit a pull request with code / documentation change
  2. Submit a issue
    • issue can be a:
    • ⚠️Problem (issue)
    • Feature request
    • ❔Question

Other

  1. By default EAST tries to work with the current depedencies - Introducing new (direct) depedencies is not directly encouraged with EAST. If such vital depedency is introduced, then review licensing of such depedency, and update readme.md - depedencies
    • There is nothing to prevent you from creating your own fork of EAST with your own depedencies


EAST - Extensible Azure Security Tool - Documentation

By: Unknown


Extensible Azure Security Tool (Later referred as E.A.S.T) is tool for assessing Azure and to some extent Azure AD security controls. Primary use case of EAST is Security data collection for evaluation in Azure Assessments. This information (JSON content) can then be used in various reporting tools, which we use to further correlate and investigate the data.


This tool is licensed under MIT license.




Collaborators

Release notes

  • Preview branch introduced

    Changes:

    • Installation now accounts for use of Azure Cloud Shell's updated version in regards to depedencies (Cloud Shell has now Node.JS v 16 version installed)

    • Checking of Databricks cluster types as per advisory

      • Audits Databricks clusters for potential privilege elevation - This control requires typically permissions on the databricks cluster"
    • Content.json is has now key and content based sorting. This enables doing delta checks with git diff HEAD^1 ¹ as content.json has predetermined order of results

    ¹Word of caution, if want to check deltas of content.json, then content.json will need to be "unignored" from .gitignore exposing results to any upstream you might have configured.

    Use this feature with caution, and ensure you don't have public upstream set for the branch you are using this feature for

  • Change of programming patterns to avoid possible race conditions with larger datasets. This is mostly changes of using var to let in for await -style loops


Important

Current status of the tool is beta
  • Fixes, updates etc. are done on "Best effort" basis, with no guarantee of time, or quality of the possible fix applied
  • We do some additional tuning before using EAST in our daily work, such as apply various run and environment restrictions, besides formalizing ourselves with the environment in question. Thus we currently recommend, that EAST is run in only in test environments, and with read-only permissions.
    • All the calls in the service are largely to Azure Cloud IP's, so it should work well in hardened environments where outbound IP restrictions are applied. This reduces the risk of this tool containing malicious packages which could "phone home" without also having C2 in Azure.
      • Essentially running it in read-only mode, reduces a lot of the risk associated with possibly compromised NPM packages (Google compromised NPM)
      • Bugs etc: You can protect your environment against certain mistakes in this code by running the tool with reader-only permissions
  • Lot of the code is "AS IS": Meaning, it's been serving only the purpose of creating certain result; Lot of cleaning up and modularizing remains to be finished
  • There are no tests at the moment, apart from certain manual checks, that are run after changes to main.js and various more advanced controls.
  • The control descriptions at this stage are not the final product, so giving feedback on them, while appreciated, is not the focus of the tooling at this stage
  • As the name implies, we use it as tool to evaluate environments. It is not meant to be run as unmonitored for the time being, and should not be run in any internet exposed service that accepts incoming connections.
  • Documentation could be described as incomplete for the time being
  • EAST is mostly focused on PaaS resource, as most of our Azure assessments focus on this resource type
  • No Input sanitization is performed on launch params, as it is always assumed, that the input of these parameters are controlled. That being said, the tool uses extensively exec() - While I have not reviewed all paths, I believe that achieving shellcode execution is trivial. This tool does not assume hostile input, thus the recommendation is that you don't paste launch arguments into command line without reviewing them first.

Tool operation

Depedencies

To reduce amount of code we use the following depedencies for operation and aesthetics are used (Kudos to the maintainers of these fantastic packages)

package aesthetics operation license
axios
MIT
yargs
MIT
jsonwebtoken
MIT
chalk
MIT
js-beautify
MIT

Other depedencies for running the tool: If you are planning to run this in Azure Cloud Shell you don't need to install Azure CLI:

  • This tool does not include or distribute Microsoft Azure CLI, but rather uses it when it has been installed on the source system (Such as Azure Cloud Shell, which is primary platform for running EAST)

Azure Cloud Shell (BASH) or applicable Linux Distro / WSL

Requirement description Install
AZ CLI
AZCLI USE curl -sL https://aka.ms/InstallAzureCLIDeb | sudo bash
Node.js runtime 14
Node.js runtime for EAST install with NVM

Controls

EAST provides three categories of controls: Basic, Advanced, and Composite

The machine readable control looks like this, regardless of the type (Basic/advanced/composite):

{
"name": "fn-sql-2079",
"resource": "/subscriptions/6193053b-408b-44d0-b20f-4e29b9b67394/resourcegroups/rg-fn-2079/providers/microsoft.web/sites/fn-sql-2079",
"controlId": "managedIdentity",
"isHealthy": true,
"id": "/subscriptions/6193053b-408b-44d0-b20f-4e29b9b67394/resourcegroups/rg-fn-2079/providers/microsoft.web/sites/fn-sql-2079",
"Description": "\r\n Ensure The Service calls downstream resources with managed identity",
"metadata": {
"principalId": {
"type": "SystemAssigned",
"tenantId": "033794f5-7c9d-4e98-923d-7b49114b7ac3",
"principalId": "cb073f1e-03bc-440e-874d-5ed3ce6df7f8"
},
"roles": [{
"role": [{
"properties": {
"roleDefinitionId": "/subscriptions/6193053b-408b-44d0-b20f-4e29b9b67394/providers/Microsoft.Authorization/roleDefinitions/b24988ac-6180-42a0-ab88-20f7382dd24c",
"principalId": "cb073f1e-03b c-440e-874d-5ed3ce6df7f8",
"scope": "/subscriptions/6193053b-408b-44d0-b20f-4e29b9b67394/resourceGroups/RG-FN-2079",
"createdOn": "2021-12-27T06:03:09.7052113Z",
"updatedOn": "2021-12-27T06:03:09.7052113Z",
"createdBy": "4257db31-3f22-4c0f-bd57-26cbbd4f5851",
"updatedBy": "4257db31-3f22-4c0f-bd57-26cbbd4f5851"
},
"id": "/subscriptions/6193053b-408b-44d0-b20f-4e29b9b67394/resourceGroups/RG-FN-2079/providers/Microsoft.Authorization/roleAssignments/ada69f21-790e-4386-9f47-c9b8a8c15674",
"type": "Microsoft.Authorization/roleAssignments",
"name": "ada69f21-790e-4386-9f47-c9b8a8c15674",
"RoleName": "Contributor"
}]
}]
},
"category": "Access"
},

Basic

Basic controls include checks on the initial ARM object for simple "toggle on/off"- boolean settings of said service.

Example: Azure Container Registry adminUser

acr_adminUser


Portal EAST

if (item.properties?.adminUserEnabled == false ){returnObject.isHealthy = true }

Advanced

Advanced controls include checks beyond the initial ARM object. Often invoking new requests to get further information about the resource in scope and it's relation to other services.

Example: Role Assignments

Besides checking the role assignments of subscription, additional check is performed via Azure AD Conditional Access Reporting for MFA, and that privileged accounts are not only protected by passwords (SPN's with client secrets)

Example: Azure Data Factory

ADF_pipeLineRuns

Azure Data Factory pipeline mapping combines pipelines -> activities -> and data targets together and then checks for secrets leaked on the logs via run history of the said activities.



Composite

Composite controls combines two or more control results from pipeline, in order to form one, or more new controls. Using composites solves two use cases for EAST

  1. You cant guarantee an order of control results being returned in the pipeline
  2. You need to return more than one control result from single check

Example: composite_resolve_alerts

  1. Get alerts from Microsoft Cloud Defender on subscription check
  2. Form new controls per resourceProvider for alerts

Reporting

EAST is not focused to provide automated report generation, as it provides mostly JSON files with control and evaluation status. The idea is to use separate tooling to create reports, which are fairly trivial to automate via markdown creation scripts and tools such as Pandoc

  • While focus is not on the reporting, this repo includes example automation for report creation with pandoc to ease reading of the results in single document format.

While this tool does not distribute pandoc, it can be used when creation of the reports, thus the following citation is added: https://github.com/jgm/pandoc/blob/master/CITATION.cff

cff-version: 1.2.0
title: Pandoc
message: "If you use this software, please cite it as below."
type: software
url: "https://github.com/jgm/pandoc"
authors:
- given-names: John
family-names: MacFarlane
email: jgm@berkeley.edu
orcid: 'https://orcid.org/0000-0003-2557-9090'
- given-names: Albert
family-names: Krewinkel
email: tarleb+github@moltkeplatz.de
orcid: '0000-0002-9455-0796'
- given-names: Jesse
family-names: Rosenthal
email: jrosenthal@jhu.edu

Running EAST scan

This part has guide how to run this either on BASH@linux, or BASH on Azure Cloud Shell (obviously Cloud Shell is Linux too, but does not require that you have your own linux box to use this)

⚠️If you are running the tool in Cloud Shell, you might need to reapply some of the installations again as Cloud Shell does not persist various session settings.

Fire and forget prerequisites on cloud shell

curl -o- https://raw.githubusercontent.com/jsa2/EAST/preview/sh/initForuse.sh | bash;

jump to next step

Detailed Prerequisites (This is if you opted no to do the "fire and forget version")

Prerequisites

git clone https://github.com/jsa2/EAST --branch preview
cd EAST;
npm install

Pandoc installation on cloud shell

# Get pandoc for reporting (first time only)
wget "https://github.com/jgm/pandoc/releases/download/2.17.1.1/pandoc-2.17.1.1-linux-amd64.tar.gz";
tar xvzf "pandoc-2.17.1.1-linux-amd64.tar.gz" --strip-components 1 -C ~

Installing pandoc on distros that support APT

# Get pandoc for reporting (first time only)
sudo apt install pandoc

Login Az CLI and run the scan

# Relogin is required to ensure token cache is placed on session on cloud shell

az account clear
az login

#
cd EAST
# replace the subid below with your subscription ID!
subId=6193053b-408b-44d0-b20f-4e29b9b67394
#
node ./plugins/main.js --batch=10 --nativescope=true --roleAssignments=true --helperTexts=true --checkAad=true --scanAuditLogs --composites --subInclude=$subId


Generate report

cd EAST; node templatehelpers/eastReports.js --doc

  • If you want to include all Azure Security Benchmark results in the report

cd EAST; node templatehelpers/eastReports.js --doc --asb

Export report from cloud shell

pandoc -s fullReport2.md -f markdown -t docx --reference-doc=pandoc-template.docx -o fullReport2.docx


Azure Devops (Experimental) There is Azure Devops control for dumping pipeline logs. You can specify the control run by following example:

node ./plugins/main.js --batch=10 --nativescope=true --roleAssignments=true --helperTexts=true --checkAad=true --scanAuditLogs --composites --subInclude=$subId --azdevops "organizationName"

Licensing

Community use

  • Share relevant controls across multiple environments as community effort

Company use

  • Companies have possibility to develop company specific controls which apply to company specific work. Companies can then control these implementations by decision to share, or not share them based on the operating principle of that company.

Non IPR components

  • Code logic and functions are under MIT license. since code logic and functions are alredy based on open-source components & vendor API's, it does not make sense to restrict something that is already based on open source

If you use this tool as part of your commercial effort we only require, that you follow the very relaxed terms of MIT license

Read license

Tool operation documentation

Principles

AZCLI USE

Existing tooling enhanced with Node.js runtime

Use rich and maintained context of Microsoft Azure CLI login & commands with Node.js control flow which supplies enhanced rest-requests and maps results to schema.

  • This tool does not include or distribute Microsoft Azure CLI, but rather uses it when it has been installed on the source system (Such as Azure Cloud Shell, which is primary platform for running EAST)

Speedup

View more details

✅Using Node.js runtime as orchestrator utilises Nodes asynchronous nature allowing batching of requests. Batching of requests utilizes the full extent of Azure Resource Managers incredible speed.

✅Compared to running requests one-by-one, the speedup can be up to 10x, when Node executes the batch of requests instead of single request at time

Parameters reference

Example:

node ./plugins/main.js --batch=10 --nativescope --roleAssignments --helperTexts=true --checkAad --scanAuditLogs --composites --shuffle --clearTokens
Param Description Default if undefined
--nativescope Currently mandatory parameter no values
--shuffle Can help with throttling. Shuffles the resource list to reduce the possibility of resource provider throttling threshold being met no values
--roleAssignments Checks controls as per microsoft.authorization no values
--includeRG Checks controls with ResourceGroups as per microsoft.authorization no values
--checkAad Checks controls as per microsoft.azureactivedirectory no values
--subInclude Defines subscription scope no default, requires subscriptionID/s, if not defined will enumerate all subscriptions the user have access to
--namespace text filter which matches full, or part of the resource ID
example /microsoft.storage/storageaccounts all storage accounts in the scope
optional parameter
--notIncludes text filter which matches full, or part of the resource ID
example /microsoft.storage/storageaccounts all storage accounts in the scope are excluded
optional parameter
--batch size of batch interval between throttles 5
--wait size of batch interval between throttles 1500
--scanAuditLogs optional parameter. When defined in hours will toggle Azure Activity Log scanning for weak authentication events
defined in: scanAuditLogs
24h
--composites read composite no values
--clearTokens clears tokens in session folder, use this if you get authorization errors, or have just changed to other az login account
use az account clear if you want to clear AZ CLI cache too
no values
--tag Filter all results in the end based on single tag--tag=svc=aksdev no values
--ignorePreCheck use this option when used with browser delegated tokens no values
--helperTexts Will append text descriptions from general to manual controls no values
--reprocess Will update results to existing content.json. Useful for incremental runs no values

Parameters reference for example report:

node templatehelpers/eastReports.js --asb 
Param Description Default if undefined
--asb gets all ASB results available to users no values
--policy gets all Policy results available to users no values
--doc prints pandoc string for export to console no values

(Highly experimental) Running in restricted environments where only browser use is available

Read here Running in restricted environments

Developing controls

Developer guide including control flow description is here dev-guide.md

Updates and examples

Auditing Microsoft.Web provider (Functions and web apps)

✅Check roles that are assigned to function managed identity in Azure AD and all Azure Subscriptions the audit account has access to
✅Relation mapping, check which keyVaults the function uses across all subs the audit account has access to
✅Check if Azure AD authentication is enabled
✅Check that generation of access tokens to the api requires assigment .appRoleAssignmentRequired
✅Audit bindings
  • Function or Azure AD Authentication enabled
  • Count and type of triggers

✅Check if SCM and FTP endpoints are secured


Azure RBAC baseline authorization

⚠️Detect principals in privileged subscriptions roles protected only by password-based single factor authentication.
  • Checks for users without MFA policies applied for set of conditions
  • Checks for ServicePrincipals protected only by password (as opposed to using Certificate Credential, workload federation and or workload identity CA policy)

Maps to App Registration Best Practices

  • An unused credential on an application can result in security breach. While it's convenient to use password. secrets as a credential, we strongly recommend that you use x509 certificates as the only credential type for getting tokens for your application

✅State healthy - User result example

{ 
"subscriptionName": "EAST -msdn",
"friendlyName": "joosua@thx138.onmicrosoft.com",
"mfaResults": {
"oid": "138ac68f-d8a7-4000-8d41-c10ff26a9097",
"appliedPol": [{
"GrantConditions": "challengeWithMfa",
"policy": "baseline",
"oid": "138ac68f-d8a7-4000-8d41-c10ff26a9097"
}],
"checkType": "mfa"
},
"basicAuthResults": {
"oid": "138ac68f-d8a7-4000-8d41-c10aa26a9097",
"appliedPol": [{
"GrantConditions": "challengeWithMfa",
"policy": "baseline",
"oid": "138ac68f-d8a7-4000-8d41-c10aa26a9097"
}],
"checkType": "basicAuth"
},
}

⚠️State unHealthy - Application principal example

{ 
"subscriptionName": "EAST - HoneyPot",
"friendlyName": "thx138-kvref-6193053b-408b-44d0-b20f-4e29b9b67394",
"creds": {
"@odata.context": "https://graph.microsoft.com/beta/$metadata#servicePrincipals(id,displayName,appId,keyCredentials,passwordCredentials,servicePrincipalType)/$entity",
"id": "babec804-037d-4caf-946e-7a2b6de3a45f",
"displayName": "thx138-kvref-6193053b-408b-44d0-b20f-4e29b9b67394",
"appId": "5af1760e-89ff-46e4-a968-0ac36a7b7b69",
"servicePrincipalType": "Application",
"keyCredentials": [],
"passwordCredentials": [],
"OnlySingleFactor": [{
"customKeyIdentifier": null,
"endDateTime": "2023-10-20T06:54:59.2014093Z",
"keyId": "7df44f81-a52c-4fd6-b704-4b046771f85a",
"startDateTime": "2021-10-20T06:54:59.2014093Z",
"secretText": null,
"hint": nu ll,
"displayName": null
}],
"StrongSingleFactor": []
}
}

Contributing

Following methods work for contributing for the time being:

  1. Submit a pull request with code / documentation change
  2. Submit a issue
    • issue can be a:
    • ⚠️Problem (issue)
    • Feature request
    • ❔Question

Other

  1. By default EAST tries to work with the current depedencies - Introducing new (direct) depedencies is not directly encouraged with EAST. If such vital depedency is introduced, then review licensing of such depedency, and update readme.md - depedencies
    • There is nothing to prevent you from creating your own fork of EAST with your own depedencies


❌