Korea’s Biggest Crypto Exchange, Bithumb, Sets Up a Listing Committee, Drops Failing Coins
South Korean crypto exchange Bithumb will begin reviewing its crypto listings monthly, intending to drop failing coins. The exchange's newly formed Eligibility Deliberation Committee will determine which coins will be dropped based on criteria including low trading volume, low market capitalization, and lack of support from developers.
According to CoinDesk the committee came into motion on Aug. 22. This committee will keep a check on the listings of the exchange every month.
The factors that the committee will consider doing will include daily trading volume, the change in base market and project support and many others. The currencies that will fail to meet the set standards will be given a time of 60 days to get their performances a notch higher. After this period, the currencies will be delisted.
According to a report from Yonhap, Bithump’s aim is to strengthen the check on technology development efforts and utility of crypto projects. The statement read:
“We will take the lead in protecting investors by creating a transparent and safe trading environment.”
This step was taken after some unauthentic coins were put in the trading lists that later fell in their performance. Also, there will be stringent measures taken into form with new coins that are being added to the market.
The committee is reported to consist of lawyers and professors who will bring expertise in the legal, technology and finance into the exchange’s review of the listing process.
The move by the giant crypto exchange comes after a general upgrade of standards at exchanges after the South Korean government agencies enhanced their crackdown on crypto businesses in the country. Banks in South Korea have also upped their anti-money laundering standards when it comes to crypto exchanges.
At the start of August, Coinone sought the services of Certik to carry out a security validation of the exchange. The exchange then published a procedure to be followed by coins seeking to be listed on the exchange. Although Coinone’s move is different from Bithumb, the two initiatives are meant to enhance the security as well as the credibility of the trading platforms.