Cryptocurrency exchanges list new currencies on a regular basis. In a lot of cases, those currencies add additional trading volume, which results in bigger profits for the exchange operators. Cryptopia is currently in the process of going through all new and existing listings to ensure that the exchange is fully compliant with current regulations. It’s an interesting situation, although the outcome of this process remains to be determined.
A Positive Decision by Cryptopia
While the smaller cryptocurrency exchanges are extremely popular these days, they also pose a big risk. More specifically, there are growing concerns over how these exchanges list coins and tokens randomly without properly vetting the code. Although that is usually not what is really happening, these concerns will not go away anytime soon. As such, exchanges will need to take things up a notch sooner rather than later.
Binance set an interesting precedent in this regard recently by conducting a proper independent audit of all its listed ERC20 tokens. Although no other exchange has followed the company’s lead, it seems to only be a matter of time until one does. No trading platform wants to risk dealing with badly coded currencies, tokens or otherwise.
Cryptopia is taking a very interesting approach to addressing these challenges. Rumor has it the company is actively reviewing all of the currencies and tokens listed on the exchange, as well as its existing trading markets. By taking a closer look at what is being traded on the exchange, Cryptopia can hopefully weed out the bad elements, assuming there are any to begin with.
More specifically, it appears Cryptopia has its lawyers going over all of its currencies to see if there are any security compliance issues concerning specific tokens or coins. Given the growing number of ICO tokens listed on Cryptopia these days, it is only normal that such concerns are taken into account. For the time being, there is no indication as to how long this process will take, as it will heavily depend on whether or not discrepancies are discovered.
This development has delayed the listing of a few currencies on Cryptopia, including the latest iteration of DNotes. Although DNotes has been listed on this exchange for some time now, there will be a swap to DNotes 2.0. That is now part of the Cryptopia review queue, and it should be listed in a few days from now. It is evident that cryptocurrencies will need to adhere to certain laws as long as centralized exchanges are still a thing.
Although one has to commend Cryptopia for taking this approach, it also highlights the growing need for decentralized exchanges. Unlike their centralized counterparts, decentralized offerings do not entail any intermediaries, KYC rules, or AML guidelines. They let anyone trade freely regardless of location, identity, or currency. Unfortunately, it will take some time until such creations gain mainstream traction, mainly because all decentralized offerings suffer from a lack of liquidity first and foremost.