Major Crypto Traders Considering Blacklist of Scammers

| Publish date: 05/09/2019
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According to mainstream media reports, at a meeting in Chicago on Tuesday, representatives from 35 of the major digital asset firms discussed the possible creation of a blacklist of those who were engaged in dubious activities in the cryptocurrency space.

Improving the Crypto Industry’s Image

At the Chicago meeting, industry majors such as DRW Holdings’ crypto unit from Cumberland, Mike Novogratz’s Galaxy Digital Holdings as well as technology startup Ripple were present.

These representatives discussed the creation of a blacklist of parties who were known to renege on trade agreements or even be involved in nefarious activities in the cryptocurrency industry.

Another suggestion made during this meeting was the establishment of the accreditation of companies that had a good standing according to the Crypto OTC Roundtable Asia (CORA), which is a loose association of cryptocurrency companies.

While the cryptocurrency industry may be over a decade old now, and is attracting some of the world’s best developers and technologists, the space has also attracted criminals and scammers. Companies are victims of cyber attacks so frequently that it is almost the norm.

The Singapore-headquartered crypto-trading firm QCP Capital’s managing partner Darius Sit reportedly stated that a community-wide effort was needed to improve compliance standards in the industry, so that liabilities stemming from dealing with bad actors could be prevented. He also said that a self-governing initiative would be welcomed by regulators.

Another solution tabled to improve the reputation of the cryptocurrency industry was to create a common standard for the verification of customer identities as well as how funds were being sourced.

While a number of ideas were discussed, there was no firm decision taken on whether a blacklist or a whitelist be created. This was the first CORA meeting and it was agreed that more discussion was required before any decisions were made.

Boding Well for the Future

The CORA event drew crypto traders from across the world and it highlighted the feeling among the major players to want to create standards such as those in traditional financial markets in this still new industry.

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However, the meeting also highlighted the fact that there was still much to be done before an ordered as well as trusted cryptocurrency trading environment could be created – especially in the OTC (over-the-counter) derivatives contracts markets.

Yoshi Nakamura, the Galaxy Digital team’s senior member, stated that the willingness of crypto trading firms to join hands in working towards create common standards for the industry boded well for the future.

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