Ten Financial Firms Form Alliance to Create Code of Conduct for Crypto Space

[Leonardo]

Ten major crypto-related and financial services firms are coming together to establish a Code of Conduct for the nascent digital asset and blockchain industry.

In a press release on Tuesday, the Association for Digital Market Assets (ADAM) announced its founding. ADAM is backed by Mike Novogratz’s crypto merchant bank Galaxy Digital, global financial services firm BTIG, fintech firm Paxos and crypto liquidity solutions provider GSR. The founding members also include Genesis Global Trading, Hudson River Trading, Symbiont, BitOoda Technologies, Cumberland and XBTO.

ADAM will work with current and former regulators to create  “comprehensive standards” for crypto market participants. Designed to complement existing laws and regulations, the initiative will encompass various spheres of working with trading, clearing, custody and settlement. More specifically, the code will include guidelines for market integrity, risk management, Know-Your-Customer (KYC) and Anti–Money Laundering (AML) policies, custody, record keeping, clearing and settlement, market manipulation, data protection, and research.

“Through such efforts, ADAM will accelerate fair and orderly digital asset markets where innovators and capital can transact with confidence,” the association’s press release adds.

Duncan Niederauer, former CEO of the New York Stock Exchange (NYSE) and ADAM Advisory Board Member, was quoted 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. I applaud the firms leading the ADAM initiative and look forward to advising them on standards that will enable this market to thrive.”

In a similar move announced late last month, Global Digital Finance (GDF), an international crypto industry body, established its own Code of Conduct consisting of ethical rules for initial coin offerings (ICOs) and crypto exchange operators. The organization, launched in March, includes Coinbase, Circle, ConsenSys, R3, DLA Piper, Diginex, and Hogan Lovells as its founding members.

Source: https://cryptovest.com/news/ten-financial-firms-form-alliance-to-create-code-of-conduct-for-crypto-space/

[cowz]

Sounds good if it will kickstart a new blockchain revolution, although it could spell trouble for smaller ico projects who will not be able to get certified