Specialists Of Leading Crypto Companies Develop A Scalable Rating System Of Digital Currencies
Anchorage, Bittrex, Circle, Coinbase, DRW Cumberland, Genesis, Grayscale and Kraken announced the launch of a joint project designed to improve the protection mechanisms for cryptocurrency traders and investors.
Employees of the enterprises formed the Crypto Rating Council, which will evaluate digital assets and decide on the listing or delisting of coins. However, experts have developed a scalable rating system that includes several dozen parameters taken from US law and the codes of rules created by the US Securities and Exchange Commission.
A Coinbase publication states the technical experts will have to give objective, factual answers in the process of grading each virtual currency. As a result of a comprehensive analysis, a certain amount of points will be assigned to a digital asset. However, council members will have the right to make an independent decision based on this information.
The system will set one to five points for all cryptocurrencies. One point means that the coin does not have enough characteristics necessary to meet the regulatory requirements for traditional securities. Bitcoin (BTC), Litecoin (LTC) and Monero (XMR) received one point each. Ethereum (ETH) scored two points, XRP takes the lead in the ranking with four points.
Council staff says that the rating of digital assets may change over time. In addition, the organization offers developers of virtual currencies to provide additional data or clarify some provisions in order to increase the number of points earned. Therefore, the Council plans to add other cryptocurrencies and create similar tools for non-US jurisdictions over the next few months.
Source: en.bit.news
