Cryptocurrency Traders Blacklist

Cryptocurrency Traders Seek a Blacklist to stop Fraud

Cryptocurrency traders globally are requesting that a blacklist be created to fight against suspicious parties that participate in illegal activities. Traders from a combined 35 crypto exchanges including Ripple and DRW Holdings gathered on 2019-05-08 in Chicago to discuss the future of a blacklist site for cryptocurrency. This information comes from the Bloomberg Report.

During this meeting it was also discussed that firms should be accredited with a good reputation, receiving a seal of approval. This would guarantee all investors that the crypto exchange they are about to trade at is safe and reliable.

A managing partner with QCP Capital commented on this announcement, saying: “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. A self-governance initiative like this is also something that regulators are keen to see.”

The results of the Meeting

Participants in this meeting also spoke about if the KYC Processes currently in effect is good enough, suggesting that they all come together to create a common standard for identity verification of funds for traders. This is because, in recent years, traders from Wall Street have moved in like a flock of birds into the cryptocurrency space. However, the lack of regulation has made the market somewhat malicious for all other firms not associated with Wall Street. Creating the blacklist is going to be a difficult task for all 35 of these cryptocurrency exchanges. It will involve many technical and legal roadblocks that for some won’t be passable.

This meeting comes at a time just after a significant cryptocurrency attack. All 35 of these exchanges have felt the effect of hackers. The most recent attack happened days ago at Binance where several thousand bitcoins were stolen, equating to $40.7 Million in US Dollars.

One of the senior traders at Greenwich commented on the meeting: “Such occurrences are unique and frequent, making a standardized implementation of a blacklist tough. There is also the question of legality, and on the cover, it looks more sinister than its intent.”

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