Due to weak regulations, 'listing fees' dominate cryptocurrency exchanges.
Why do coins from companies without a proper blueprint continue to get listed on exchanges? What is happening at these exchanges?
(omitted)
The listing contract is a document that outlines the obligations of both the issuer and the exchange regarding the listing. It helps to understand how a coin gets listed.
According to the contract, an issuer wishing to list must submit five documents to the exchange: △a white paper, △a checklist, △a technical review report, △a circulating supply confirmation, and △an ethics pledge. The exchange then reviews these documents through its internal review committee before listing the coin.
The most important of these documents is the white paper, which contains basic information about the coin, such as the reason for issuance, the supply, and future plans. However, in Korea, it is difficult to distinguish between good and bad projects just by looking at the white paper. This is because the law does not specify the mandatory contents of a white paper. When reviewing various white papers, it's not uncommon to find white papers that present more 'plausible' blueprints rather than technical details.
Hyeonsu “Elliot” Jin, managing partner at Decent Law Firm who specializes in cases related to virtual assets, said, "In Korea, there are no set rules on what must be included in a white paper. If you look at multiple white papers, you'll realize there's no standardized format."
In contrast, Europe has legally established detailed requirements for white paper content. Last month, the European Union (EU) passed the 'Markets in Crypto-Assets (MiCA)' law, which mandates that white papers include not only basic information like the issuer's name and institutional identification code but also descriptions of potential conflicts of interest.
