CoinGecko and 21Shares propose global crypto classification standard
2 min read
Major cryptocurrency data aggregator CoinGecko and crypto investment firm 21Shares have joined forces to launch a global standard for classifying various crypto asset.
On Feb. 8, CoinGecko and 21Shares released The Global Crypto Classification Standard report, proposing a uniform method to categorize crypto assets. The effort aims to help investors and regulators better understand the specifics of each asset class in crypto, including potential failures like those seen by the industry in 2022.
“Since Bitcoin’s inception around 13 years ago, thousands of unique crypto assets and protocols have emerged, each with unique characteristics and different value propositions,” Carlos Gonzalez, research analyst at 21Shares’ parent firm 21.co, told Cointelegraph, adding:
“Unlike traditional financial assets, crypto assets can vary dramatically in nature, both as it relates to the asset itself and the protocol behind it.”
At the time of writing, there are more than 12,000 diverse crypto assets
CoinGecko and 21Shares’ effort to bring a global crypto classification standard is one of many global efforts to categorize cryptocurrencies. On Feb. 3, the Department of the Treasury in Australia released a consultation paper on “token mapping,” aiming to have its own taxonomy of crypto assets. Previously, Belgium’s Financial Services and Markets Authority was also seeking feedback on its classification of crypto assets as securities, investment instruments or financial instruments in July 2022.
“While the classification of digital assets is quite commonplace, many classification efforts are one-dimensional and confuse traditional investors by mixing crypto assets — the investable tokens — directly with the protocols behind them,” Gonzalez said.
The exec also expressed confidence that 21Shares’ collaboration with CoinGecko — a major independent crypto data website — will allow the newly proposed standard to appeal to both retail and institutional investors, as well as policymakers across the world.
