CryptoCompare Exchanges Assessments Reveal Needed Industry Improvements

CryptoCompare, provider of data on digital assets, today released its updated version Exchange benchmarkwhich highlights the best cryptocurrency exchanges based on a comprehensive methodology for assessing counterparty, operational, trading and security risks.

The report ranks more than 150 global spot exchanges and assigns AA-E grades to identify the lowest risk trading venues in the industry. These rankings support the selection criteria for the CryptoCompares suite of investable indices for digital assets.

Only four percent of the exchanges received the top AA rating: Coinbase, Gemini, Kraken, CrossTower, Bitstamp and itBit. First class exchanges increased their market share from 85 percent to 89 percent as market participants moved to exchanges with lower risk. The number of top tier exchanges increased as operational standards improved, but the number of AA and A rated exchanges fell from 24 to nine due to stricter requirements for categories and transaction risk thresholds.

One important area of ​​improvement that is needed is the KYC practices. One in three exchanges had either poor or inadequate KYC procedures. Another need is improved data quality standards. Fifteen percent of exchanges pushed error-prone data or unannounced updates via their REST API or Websocket data feeds in the past year.

“As more and more individuals and institutions try to grapple with digital assets, it becomes increasingly important to compare which exchanges are the most trustworthy and reliable in the field,” said CryptoCompare Co-Founder and CEO Charles Hayter called. “Our biannual exchange benchmark has become the industry standard for ranking these exchanges and uses a comprehensive data set that covers more than 150 exchanges in 8 rating categories to identify the exchanges with the lowest risk in the industry.”

“We continue to invest in innovative products that attract new customers and deepen relationships with existing customers. Our products are designed to be safe, trustworthy and easy to use for both home and institutional users. ”Said Vishal Gupta, Exchange boss at Coinbase.

“Gemini is well on the way to creating a company that is both a utility and a sense of community for our customers and employees,” said Gemini’s UK director Blair Halliday called. “Since its inception, Gemini has worked proactively with regulators and government agencies to ensure we provide a secure, transparent, and lawful platform to our clients – this has helped us grow in both our institutional and retail businesses. We are excited to be recognized again as one of the leading exchanges for delivering a trusted experience to customers. “

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