Crystal Blockchain and the Global Anti-Scam Alliance have launched the Crypto Trust Seal (CTS), a global trust seal for cryptocurrency providers that will create a framework for transparency.
By providing a degree of assurance, with high standards that must be externally verified, certified companies can demonstrate compliance with a set of responsible practices intended to become industry requirements.
“As with any technology, blockchain can bring us many benefits. However, it is increasingly being misused by criminals preying off the vulnerable. Launching a global trust seal for cryptocurrency providers will raise the bar in a sector plagued by scammers,” said Jorij Abraham, Managing Director of the Global Anti-Scam Alliance.
“Crystal conducts all its worldwide blockchain investigations with integrity, while employing cutting-edge technology. We couldn’t ask for a better partner on this long overdue mission for the space.”
The CTS seeks to provide valuable information for those navigating the blockchain space.
This includes providing criteria for external validation of coin issuers, lenders, decentralized finance (DeFi) protocols, exchanges, marketplaces, and even virtual worlds. By bringing trust to the crypto industry, both retail customers and institutional mainstays will benefit.
The cryptocurrency industry has been plagued by numerous incidents of scams, hacks, fraud, deceit, misrepresentation, and illicit activities.
The US Federal Trade Commission reports nearly $2 billion lost in investment scams in the USA alone in the first half of 2023; this amount is just the tip of the iceberg, as only an estimated 7% of victims report scams to the police.
These issues have made it challenging for users to identify safe platforms for their cryptocurrency transactions.
Notable cases involving Mt. Gox, Celsius, 3AC, Voyager, FTX, and others have created a negative perception among the general public, discouraging them from exploring the crypto industry. Every day, new scams and fraudulent schemes emerge, preying on unsuspecting consumers and resulting in substantial financial losses.
“It is time to distinguish responsible actors, from irresponsible and fraudulent ones,” said Nick Smart, Crystal’s Director of Intelligence.
“Crystal’s work with the Global Anti-Scam Alliance, and the creation of the CTS seal, will allow digital currencies to mature into a regulated industry with recognized rules and operating procedures.”
