Bloomberg: Major Crypto Traders Converge To Create Industry Blacklist, Standards

Home » Bloomberg: Major Crypto Traders Converge To Create Industry Blacklist, Standards

According to Bloomberg, there are reports that a group of crypto traders are looking to create a blacklist of firms or individuals who take part in malicious crypto deeds such as scams and theft.

The group had a meeting in Chicago on Tuesday which had in attendance; DRW Holdings Inc.’s Cumberland crypto unit, Mike Novogratz’s Galaxy Digital Holdings, tech start-up Ripple and several other traders from 33 cryptocurrency firms. They all proposed to assemble a list of people who create a bad name for the cryptocurrency space.

In the meeting, there were suggestions to create certificates for firms who want to get into the industry which would be approved by Crypto OTC Roundtable Asia (CORA); the association of cryptocurrency-related businesses.

A Singapore-based managing partner, Darius Sit argued that:

“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.’’

Darius is the managing partner at QCP Capital, a cryptocurrency trading firm.

The meeting was held on the very day the news of Binance’s hack broke out. It was a devastating day for the crypto world as these theft and investment scams have been going on for quite some time now with no end in sight.

This is one of the major reasons the group came together to manage this threat so it doesn’t destroy the crypto industry. Such acts had already caused panic withdrawals and have even started scaring traders away.

Chainalyis report

The co-founder and COO of Chainalysis, Jonathan Levin claimed that a considerable percentage of crypto-related crimes involves Bitcoin. Chainalysis is an analytical Blockchain start-up that helps Blockchain firms build trust, prevent, detect and investigate cryptocurrency laundering, money laundering, fraud and compliance violations.

Jonathan further added that due to the transparency the Blockchain provides, hackers are finding it hard to cover their tracks. Law enforcement agencies are also building cases against anyone suspected of cryptocurrency related scams or crimes.

Unlike the traditional financial system which makes it difficult to detect such crimes due to various loopholes in the system. Investigators take longer time to obtain financial records from foreign banks which gives the perpetrators a better chance to escape with no hope of being caught.


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