A group of cryptocurrency trading firms comes together for an initiative targetted at preventing the rising number of hacks and scams in the cryptocurrency industry, as reported Bloomberg on Thursday, 9 May.
The round-table event in Chicago included Ripple, market maker Cumberland, Michael Novogratz’s Galaxy Digital Holdings and over 30 other firms. One of the standout ideas was creating a list of entities involved directly or indirectly in criminal activities such as money laundering and drug trafficking.
The other notable one was giving companies in good standing some form of accreditation. As per the report, another route discussed is to set standards for verifying customers identities and the sources of their funds. CORA may also share information on actors defaulting on derivatives trades.
The managing partner at trading firm QCP Capital, Darius Sit, told the publishing:
“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.”
He added that such moves to incorporate self-governance into the crypto industry is something that regulators have had been keen to see. As per Bloomberg, the event was organized by Crypto OTC Roundtable Asia (CORA), a “loose association” of crypto businesses.
Any final decisions are still pending as the firms are still pondering over the suggestions. Reportedly, the group plans to reunite in the near future to take a feasible idea ahead.
Notably, cryptocurrency exchange Binance was hacked on the day of the event itself drawing the point home quite severely. The hackers managed to scrape off 7,000 bitcoin (worth over $40 million) from the exchange. A recent survey released by Australia’s Competition and Consumer Commission asserts that Australia observes 190% rise in crypto scams in 2018.