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Crypto exchange Bybit announced that it has implemented a new framework for listing and delisting cryptocurrencies to “enhance user protection.” 

On Aug. 13, the crypto exchange pointed out that they have seen a significant surge in project listings across the crypto industry raising concerns about “transparency, security, and potential market manipulations.”

Bybit has promised to continue to utilize its pre-market feature to address the market manipulation issue. As part of its new framework, Bybit will establish a system for ongoing monitoring of listed projects to ensure they continue to meet the listing criteria and disclosure obligations through periodic reviews, project performance, financial audits, and technology audits

To ensure transparency, the crypto exchange will provide comprehensive information about key dates related to listed projects including protocol upgrades, token burns, and frozen maturities. 

The crypto exchange’s delisting protocol — which focuses on performance metrics, compliance failures, and fraudulent activities — ensures “risky” projects are removed from the platform. Bybit will also seek users' feedback regarding their listing decisions through surveys, voting mechanisms, or advisory panels.

Ever since the regulatory landscape for crypto changed, the market has noticed that crypto exchanges have started to prefer compliant tokens over noncompliant alternatives.

After Circle, the issuer of USDC and EURC, became the first stablecoin provider issuer to achieve compliance with the European Union's Markets in Crypto-Assets (MiCA) regulatory framework on June 1, Kaiko noticed that EURC and USDC saw “an increase in the daily trading volume,” an indication that the market is “suggesting increased demand for transparency and regulated alternatives.”

Even though non-compliant stablecoins still dominate the market, Kaiko believes this trend will shift as major crypto exchanges like Binance, Bitstamp, and other centralized crypto exchanges have already “have already implemented restrictions, delisting non-compliant stablecoins for their European customers.”

Read more: Bybit exits French market amid developing crypto regulations