How does Crypto.com control which virtual assets to add, pause, and remove on its platform?
Crypto.com conducts due diligence on virtual assets before they are available on our platform. Deciding whether to add a virtual asset to a platform is based on a review of publicly available information and other information about the virtual asset, including, but not limited to:
- Create, govern, use, and design the virtual asset, including issuance documents, consensus mechanisms, disposal technology, code governance and design, and code security;
- the supply, demand, maturity, and usability of the virtual asset;
- reliability and monitoring capability of the virtual asset;
- material negative communication regarding the virtual property;
- and legal status and regulatory risks associated with the virtual asset.
We have a Token Ingress and Audit Committee that is responsible for assessing and determining risks for each virtual asset. The evaluation process includes:
- Gather relevant information about the virtual asset
- Business Risk Assessment
- Risk Assessment and Compliance
- Technological Risk Assessment and Cybersecurity
- Liquidity Assessment
- Final Recommendation and Approval
Where required by law, Crypto.com will seek outside legal advice regarding the legal and regulatory status of the virtual asset, including whether it constitutes a security under applicable laws. At the same time, virtual assets received to the platform are subject to continuous tracking, in particular:
- Virtual asset eligibility
- Material changes to the issuer, project, legal status, structure, technology, operation, or governance of the virtual asset
- Negative News
- Legal status of the virtual asset
In the event of a decision to suspend or remove a Virtual Property, Crypto.com will notify customers and inform them of the actions, restrictions, and/or restrictions to ensure that they have opportunities to release or manage any risk they may arise with respect to the affected Virtual Assets.
