CryptoCompare Exchanges Assessments Reveal Needed Industry Improvements

Digital asset data provider CryptoCompare today released its updated Exchange Benchmark, revealing the best cryptocurrency exchanges based on a comprehensive methodology assessing counterparty, operational, trading and security risks.

The report ranks more than 150 global spot exchanges and assigns AA – E grades to help identify the lowest risk venues in the industry; these rankings power the selection criteria for CryptoCompare’s suite of investable digital asset indices.

Only four per cent of exchanges earned the top AA grade: Coinbase, Gemini, Kraken, CrossTower, Bitstamp and itBit. Top tier exchanges expanded their market share from 85 per cent to 89 per cent as market participants moved toward lower risk exchanges. The number of exchanges considered top-tier increased as operational standards improved, yet the number of AA- and A-rated exchanges fell from 24 to nine due to stricter category and transaction risk threshold requirements.

One key area of improvement that is required is KYC practices. One out of every three exchanges had either poor or inadequate KYC procedures. Another need is improved data quality standards. Fifteen per cent of exchanges have pushed some form of error-prone data or unannounced updates via their REST API or Websocket data feeds over the last year.

“As more individuals and institutions seek to gain exposure to digital assets, it is becoming increasingly important to benchmark which exchanges are the most trustworthy and reliable in the space,” CryptoCompare co-founder and CEO Charles Hayter said. “Our bi-annual Exchange Benchmark has become the industry standard for ranking these exchanges, using a comprehensive data set that covers more than 150 exchanges across 8 categories of evaluation to identify the lowest risk exchanges in the industry.”

“We continue to invest in innovative products that attract new customers and deepen relationships with existing ones. Our products are built to be safe, trusted, and easy to use for both retail and institutional users.” said Vishal Gupta, head of Exchange at Coinbase.

“Gemini is on a journey to create a company that is both a utility and provides a sense of community for our customers and employees,” Gemini’s UK head Blair Halliday said. “Since its inception, Gemini has proactively worked alongside regulators and authorities to ensure we are providing our customers with a secure, transparent, and regulatory compliant platform – this has helped us achieve growth across both our institutional and retail business. We are excited to, again, be recognized as one of the top exchanges for delivering a trusted experience to customers.”

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