Friday, September 25, 2020

Top exchanges form a “Crypto rating council,” Binance overlooked

The Takeaway:

Coinbase revealed yesterday that top crypto-related firms had formed a "Crypto Rating Council" that will rate different cryptocurrencies. The rating on the scale 1 to 5 will represent how compliance a coin is with the US authorities. However, the world's leading crypto exchange by trading volume, Binance was not included in the council.

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Many top crypto exchanges are coming together to form a Crypto Rating Council to rate different cryptocurrencies. A coin would be ranked on a scale of 1 to 5 on how complaint the coin is with the US authorities. The companies that formed the council include Coinbase, Kraken, Circle, Bittrex, and Grayscale. One of the leading crypto exchange by trading volume, Binance is not a part of the council.

Coinbase on Monday announced in a blog post that the point-based system would determine whether a digital asset falls under the US securities law using guidance from the SEC. There is speculation that exchanges that formed the council are directly competing with China-based Binance. Coinbase is planning to issue to its own Initial Exchange Offering (IEO) to compete with Binance. 

Earlier, founder of Ayre Group and Bitcoin SV supporter, Clavin Ayre lashed out on Binance and said that the exchange is running a scam and would be shut down within a year. Founder of DigiByte, Jared Tate alleged that Binance asked for $300,000 and 3% of DigiByte in order to list the coin on the exchange. However, there were no proofs that backed his claims. 

As of now, no exchange in the council has made any comments as to why Binance was not included in the council. Let us know in comments why do you think the world’s leading crypto exchange by trade volume was not included in the council?

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Glenn Harper
Glenn Harper
Glenn has only two interests: Bitcoin and Aviation. After completing his graduation from San Diego State University in 2006, Glenn started working in the airlines and aviation industry. Aviation was his only passion before he came to know about bitcoin in 2012 after which he decided to dedicate 8 hours of his day for aviation and 8 hours for learning and writing about bitcoin and the technology behind it. Glenn lives with his wife and a 7-year-old son who mines ethereum on his computer and is also quite passionate about cryptocurrencies.

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