Top Cryptocurrency Firms Create Code of Conduct Guidelines for the Market
A group of leading cryptocurrency and financial institutions recently collaborated to form a body that would establish a Code of Conduct guideline for the virtual currency industry.
ADAM: Code of Conduct for the Cryptocurrency Market
According to a press release published on Business Wire, ten leading cryptocurrency and fintech firms came together on Tuesday (November 27th), to form a body known as the Association for Digital Asset Markets (ADAM). The organization would collaborate with other regulatory agencies to create rules and regulations that would ensure the “efficient trading, custody, clearing, and settlement of digital assets.”
ADAM also intends to create a Code of Conduct for virtual assets that would add to the current laws and regulation. This move would increase fairness and orderliness in the cryptocurrency market and would enable investors and innovators transact confidently.
The association’s ten founding members include Cumberland, Galaxy Digital, Genesis Global Trading, BTIG, Paxos, Hudson River Trading. Other members are BitOoda, Symbiont, GSR, and XBTO.
Former Chief Executive Officer of the New York Stock Exchange (NYSE), Duncan Niederauer, is ADAM’s Advisory Board Member. Commenting on the creation of the organization and its aims and objectives, Niederauer said:
Rules are fundamental to the development of any market. Over 200 years ago, market leaders came together to draft rules that led to the creation of the New York Stock Exchange. The advent of digital assets requires a similar effort; one that will clarify existing rules and give both investors and regulators the confidence necessary to sustain this market.
The former NYSE CEO also lauded the efforts of the companies behind the initiative. Furthermore, Niederauer stated that he would use his advisory role to help the cryptocurrency market thrive.
The Code of Conduct’s guidelines would also cover risk management, Know Your Customer (KYC), AML, market manipulation, among others.
The association intends to welcome new members and would release a list of officers in the nearest future. ADAM’s offices would be in Washington, D.C. and New York.
Attempts to Self-Regulate the Cryptocurrency Industry
In the wake of market manipulation, hacks, lax security, among others plaguing the virtual currency industry, cryptocurrency exchanges have collaborated to revamp the sector. The U.S. Justice Department is currently investigating the virtual industry for market manipulation, with focus on Tether.
In a bid to regulate the digital currency market, Gemini, owned by the Winklevoss twins, formed a self-regulatory body called Virtual Commodity Association (VCA) Working Group. Other members of the group include Bitstamp, Bittrex, and BitFlyer.
In Japan also, a group of digital currency exchanges came together to form an organization known as the Japan Virtual Currency Exchange Association (JVCEA). Approved by the FSA, the group would establish rules protecting investors’ funds, monitor, and sanction cryptocurrency exchanges.