Big crypto trading companies have come up with new initiatives aimed to purge the industry from scammers and thieves.
Over 30 digital assets trading companies have called for making a blacklist of various fraudsters and criminals that have flooded the crypto market, Bloomberg reports. Cryptocurrency advocate believe this will keep bad actors in check and help to clean up the industry.
Cryptocurrency Space a Better Place
This week, a number of the biggest crypto trading firms have gathered in Chicago to discuss current regulatory issues and the ways to counter numerous cases of crypto-crime. The conference was organized by Crypto OTC Roundtable Asia (CORA), a loose association of cryptocurrency businesses. The event involved 35 industry leaders, including Ripple, Cumberland, and Michael Novogratz’s Galaxy Digital Holdings.
They discussed introducing a black list of scammers, thieves, and other untrustworthy market participants involved directly or indirectly in illicit activities. Another proposal envisaged the creation of a register of reliable companies with a good reputation and giving them some form of accreditation. Next, the industry representatives pondered over setting common standards for verifying identities of customers and their financing sources.
As Darius Sit, managing partner at QCP Capital, commented to Bloomberg, “a community-wide effort to improve compliance standards would prevent liabilities that might stem from trading with bad actors or dealers that trade with bad actors.”
Taking Regulation in Their Own Hands
The recent initiatives have been much-awaited in the largely unregulated crypto market, which has attacted more and more scammers and bad actors in recent years. On the day of the conference, another high-profile hack occurred, with more than 7,000 BTC stolen from the high-profile cryptocurrency exchange Binance. Moreover, in the first quarter of 2019, the estimated total figure of losses from cryptocurrency thefts, scams, and fraud exceeded $1.2 billion.
The event in Chicago stressed the willingness of the leading industry players to establish common rules and standards for the crypto market and create a trusted trading environment. Notably, the crypto traders confirmed their will to work together for a better future. “We are now off our knees and on to our feet,’’ one event participant stated.
There’s still much to do as there is no final decision on the creation of a blacklist or whitelist — but the group is set to meet again soon to continue hashing out its ideas. Despite slow progress, these initiatives might help to create the bridge between crypto assets and traditional finance, which is essential for crypto mass adoption and development. Besides, such a self-governance initiative should also be most welcomed by regulators.
Do you believe that bringing more self-governance to the crypto industry will bolster its growth? Let us know your thoughts in the comments below!
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