Non-compliance with DATA leads to fine for CoinExchange

According to the latest report, an open-source blockchain project StrongHands (SNHD) exposed the non-compliance of crypto exchange CoinExchange of the established requirements of the CoinMarketCap.

CoinMarketCap is a website for digital currency market analysis and tracking that provides data on over two thousand digital currencies.

While taking into account this act of non-compliance, CoinMarketCap stated that this happened due to the DATA initiative’s Phase 1implementation. Moreover, exchanges who fail to comply will be eliminated from the adjusted volume and the volume-weighted average price on CoinMarketCap. These exchanges would be restored after submission of required API updates.

Previously, CoinMarketCap developed an alliance Data Accountability &Transparency Alliance (DATA) in May. The alliance was introduced shortly after the report published by Bitwise Asset Management stating that almost ninety-five percent of the bitcoin trading volume that is reported is fake. In this regard, CoinMarketCap stated that it will take measures that will ensure that the users are enabled to make well-informed decisions.

Much of the major crypto exchanges including the Huobi, OceanEx, and Binance joined this initiative at its launch and assured to submit their live trading and order the book data within forty-five days.

Although most of the major exchanges were able to fulfill this requirement, however, the smaller exchanges were either technically not able to do so or unwilling. After a few months, a little more than seventy (70.3) percent of all the exchanges listed on the exchange followed through the requirements.

CoinMarketCap will enlist those exchanges that failed to comply with the requirement of data disclosure.

This move will surely enable exchanges to distinguish and market themselves from other exchanges and resultantly will achieve enhanced transparency and disclosure.

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