min to read

2019-09-30 20:28:35




News

Coinbase, Bittrex and Kraken launch cryptocurrency compliance assessment system for securities

Exchange x compliance

min to read

2019-09-30 20:28:35

Operators of bitcoin exchanges, including Coinbase, Kraken, Circle and Bittrex, have developed a system to assess which cryptocurrencies are related to securities under U.S. law.

Operators of bitcoin exchanges, including Coinbase, Kraken, Circle and Bittrex, have developed a system to assess which cryptocurrencies are related to securities under U.S. law.

 

According to the Wall Street Journal, the system will help exchanges decide which digital assets to include in the listing and which should not be dealt with in order not to violate the requirements of securities laws.

 

A specially created Cryptocurrency Rating Council evaluates digital assets based on the rules and recommendations of the US Securities and Exchange Commission (SEC). Cryptocurrency project developers do not participate in asset valuation, but may provide additional information.

 

The rating structure assigns from 1 to 5 points to the asset in question. The highest value indicates that cryptocurrency has the maximum number of signs of a security.

 

The Council published the results of an assessment of 20 cryptocurrencies. Bitcoin, Litecoin (LTC), Monero (XMR) and DAI each received 1 point, which indicates a minimum probability of classifying them as securities. The same applies to Ethereum (ETH) – only 2 points.

 

Ripple's XRP coin was at risk with 4 points. The ratings of tokens EOS, FOAM, Stellar (XLM), Tezos (XTZ), Augur (REP), Hedera Hashgraph (HBAR) and LOOM (Loom Network) are closer to this value – 3.75 points.

 


 

The system itself selects digital assets for assessment, but may consider an application.

 

In addition to the exchange operators, the founders of the Cryptocurrency Rating Council were the industry’s custodial and trading companies, including Anchorage, a division of Cumberland holding DRW, Genesis Global Trading and Grayscale Investments.

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