South Korea’s largest cryptocurrency exchange Bithumb said Thursday it will tighten its own screening of the eligibility of virtual coins trading on its platform starting next month.

It will establish an independent screening board, and “disqualified” coins would be placed on a black list to face delisting if there are no signs of improvement in the following two months, the company said.

Delisted tokens would no longer be available on Bithumb but would still be found on other exchanges.

Bitthumb said guidelines for delisting would be daily trading volumes, volatility in market cap, lack of support from cryptocurrency developers, technological deficiencies, involvement in financial crimes and delisting requests from external cryptocurrency associations.

Bitthumb plans to form later this month an advisory board consisted of lawyers and professors to back the new board. Experts in law, technology and fintech would also be asked to participate in the committee to ensure transparent and fair evaluation.

The move is seen an attempt to establish greater legitimacy in digital assets and trust in the overall cryptocurrency market. Bitcoin’s feverish run in 2017 had led to a proliferation of new coins, but also invited scammers.

“We will step up efforts to grow cryptocurrency technology as well as monitor its efficacy,” said a Bithumb official, adding that it would work to create a transparent and safe trading environment to protect investors.

By Kim Gang-rae and Kim Hyo-jin

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]