Coinbase, America’s biggest cryptocurrency exchange platform has added new policies that will enable the process of enlisting new tokens easier and quicker.
On Tuesday, Coinbase announced their latest policy for adding assets. As a major change in the process, the site will now allow the developer teams behind cryptocurrencies to fill out an application form to enlist their token on Coinbase. The Coinbase team will then evaluate the token as it has done in the past and approve or reject the application accordingly.
Due to the new policy, the company has also made changes in their announcement process, the company says:
“Because listing announcements will become more frequent, we expect to publicly announce the addition of new assets only at or near the time of public launch.”
Notably, now Coinbase will not disclose the addition of new token days prior to the listing, instead, it will either make an announcement at the time it adds a token or just before. The platform currently offers bitcoin (BTC), ether (ETH),bitcoin cash (BCH), litecoin (LTC), and ethereum classic (ETC) trading.
The press release by the firm states the aim of the policy as:
“to rapidly list all assets that meet our quality criteria and are compliant with local law.”
Furthermore, abiding by country and state-based crypto regulations, Coinbase will begin with offering only certain token outside the U.S., “in a jurisdiction-by-jurisdiction manner.”
Notably, the policy mentions that the applications for listing may eventually carry a fee, “to defray the legal and operational costs associated with evaluating and listing new assets. ” However, the platform might face criticism for taking money to list a new coin, if they implement application fees.
Almost a year before, Coinbase was under heavy fire as the price of bitcoin cash suspiciously soared just before their official public announcement about adding the token. Critics alleged that insiders information about the token addition was leaked beforehand.
Coinbase did not just change their policy to announce a new token ahead of time but claims to implement stricter employee trading restrictions. In March, Coinbase announced their intention to add ERC20 tokens beforehand. The CTO of Coinbase, Balaji Srinivasan told Yahoo Finance in June:
“Our new policy basically pre-announces assets to avoid exactly that kind of issue [that happened when it added bitcoin cash]. We announce the intent, then we go and list it. We’re really just trying to be extremely above-board with everything that we’re doing.”
Just a few months after the scandal and the policy change, the listing process is changed again. Srinivasan elaborates their reason for the same:
“This is an evolution of the current process. We looked at what was working and what wasn’t and found that having multiple announcements wasn’t in the best interests of our customers.”
The new policy also entails that Coinbase will:
“augment our quality control by adding star ratings, rankings, and reviews to help users learn about assets.”
As the Coinbase mission statement mentions:
“to give anyone — no matter where they live — trustworthy and secure access to a more open, blockchain-based financial system.”
The recent update with ratings, ranking and review will aid consumers in making their decisions. Scared by the negative headline about crime or hacks or exchange in relation to the virtual currencies, many Americans aren’t inclined towards them. Coinbase’s library of reviews and ratings will lead to a crypto education forum in similar lines the Yelp.