In news released on 27th November, ten financial and tech firms have established an Association for Digital Asset Markets (ADAM) to create a “code of conduct” for the cryptocurrency sector.
According to the press release, ADAM will focus on working with regulators to seek “comprehensive standards” for digital asset market participants. These standards will include trading, custody, clearing and settlement in the sector, as well as providing an ethical conduct and professionalism framework.
ADAM’s founding members include Galaxy Digital, a crypto merchant bank headed by Mike Novogratz, BTIG, a global financial services firm, GSR, a crypto liquidity solutions provider and Paxos, a fintech platform that has recently launched the PAX stablecoin.
Duncan Niederauer, former CEO of the New York Stock Exchange (NYSE) and ADAM Advisory Board Member, is quoted in the press release as saying: “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.”
Essentially, ADAM will aim to improve transparency for those most concerned with this emerging market, namely regulatory authorities and policy makers, as well as the public, and ultimately prevent market manipulation.
According to Cointelegraph, the Code of Conduct will complement existing laws and regulations “in order to accelerate fair and orderly digital asset markets where innovators and capital can transact with confidence.” More specifically, the code will provide guidelines for “market integrity, risk management, KYC and AML, custody, record keeping, clearing and settlement, market manipulation, data protection, and research.”
Global Digital Finance is also developing its own code of conduct for cryptocurrency, with the aim of having a “shared rulebook” in respect of money handling, risk management, interaction with customers and regulators, and market practices.