The Chief Executive Officer of Coinbase, a well-known crypto exchange, has recently pointed out the challenges concerning the management of huge crypto growth. Brian Armstrong has proposed a renovation of the token listing procedure amid the swift growth, deeming conventional approach no longer feasible. The executive took to his official social media account to urge a shift in the platform’s regulatory agenda and internal processes.
Brian Armstrong Proposes Shift in Token Listing Procedures as Crypto Market Sees Rapid Surge
Brian Armstrong mentioned that the crypto sector is going through a noteworthy growth and innovation. Keeping this in view, he considers the conventional procedures of token listing as unviable. Keeping this in view, the Coinbase CEO proposes a change in the internal procedures and regulatory framework of the crypto exchange. As per him, the crypto realm witnesses the creation of up to 1M latest tokens every week. In such a rapidly expanding sector, there is a requirement for a cutting-edge approach to the listing and evaluation of the tokens.
Coinbase has implemented a comprehensive token listing approach. In this respect, every token goes through a detailed vetting procedure to guarantee security and compliance for consumers. Nonetheless, in line with the massive volume of exclusive tokens emerging in the market, the respective procedure has become significantly unsustainable. Thus, Armstrong highlighted the impracticality of the case-by-case evaluation and listing procedures for new tokens.
Proposal Includes Transition from “Allow List” Approach to Exclusive “Block List” Mechanism
According to the Coinbase CEO, the crypto exchange should shift from the “allow list” approach to a “block list” mechanism. The allow list approach includes the individual approval for tokens in terms of trading. Nonetheless, the block list just focuses on the flagged tokens, which have some problems, to exclude them from listing. The proposed approach could leverage advanced tools, on-chain data analytics, as well as consumer reviews to take appropriate actions.
