How does Crypto.com determine which virtual assets to admit, suspend and delist on its platform?
Crypto.com performs due diligence with respect to virtual assets prior to making them available on our platform. Our decision on whether or not to list a virtual asset on our platform is based on our review of publicly available information and other information about the virtual asset, including, but not limited to:
The creation, governance, usage and design of the virtual asset, including issuance documents, consensus mechanisms, clearing technology, code governance and design, and code security;
The supply, demand, maturity, and utility of the virtual asset;
The reputability and monitorability of the virtual asset;
Material adverse media relating to the virtual asset; and
Legal status and regulatory risks associated with the virtual asset.
We have a Token Admission and Review Committee which carries out the evaluation and risk determination for each virtual asset. The virtual asset evaluation process includes:
Collection of relevant information regarding the virtual asset
Business risk assessment
Risk and compliance assessment
Technology and cybersecurity related risk assessment
Liquidity assessment
Final recommendation and approval
Where required by law, Crypto.com will seek external legal advice as to the legal and regulatory status of the virtual asset, including whether or not it constitutes a security under the relevant laws.
In addition, virtual assets admitted to the platform are subject to ongoing monitoring, in particular:
Eligibility of the virtual asset
Material changes to the issuer, project, legal status, structure, technology, operation or governance of the virtual asset
Adverse news
Legal status of the virtual asset
If a determination to suspend or delist a virtual asset has been made, Crypto.com will notify clients and inform them of the actions, limits and/or restrictions to ensure that clients have opportunities to unwind or manage any risks they may have in relation to the affected virtual assets.