Major cryptocurrency trading firms have had about enough of the ongoing scams and hacks that are all-too-frequent in the young industry.
According to a recent report by Bloomberg, 35 firms including DRW Holdings' crypto unit, Mike Novogratz's Galaxy Digital (TSXV:GLXY), and Ripple got together in Chicago this week to discuss building a blacklist of groups "known to renege on trades or engage in nefarious activities."
"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," said Darius Sit, a Singapore-based managing partner at crypto trading firm QCP Capital, who helped organize the CORA meeting. "A self-governance initiative like this is also something that regulators are keen to see."
The report indicates that the firms are willing to work together to push the industry forward. However, there was no decision made on actually moving to create the blacklist.
The meeting seems timely given the recent hack of Binance, the world’s largest crypto exchange, on Tuesday night that resulted in 7,000 bitcoin (BTC) being stolen from the platform's hot wallet.
