Ten financial and tech firms established an Association to create a “code of conduct” for the crypto sector
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The founding members of the ADAM include Mike Novogratz’s crypto merchant bank Galaxy Digital, BTIG-a global financial services firm, Paxos- a fintech firm of recently introduced stablecoin PAX, and GSR-Crypto liquidity solutions provider.
As per the press release, the main aim of the ADAM is to work with the regulators and seek extensive standards for the participants of the digital asset market. These will aim to comprehend trading, custody, clearing and settlement in the industry, and to offer a framework for honest conduct and professionalism.
The standards are also made in order to enhance the transparency for both the administrative authorities, policymakers and the public, and to extensively stop market manipulation, the report says.
The former CEO of the New York Stock Exchange (NYSE) and ADAM advisory Board Member- Duncan Niederauer is cited as saying:
“Rules are essential in the development of any market. Nearly 200 years ago, the market leaders united together to create rules and protocols that ultimately resulted in the creation of the New York Stock Exchange. The emergence of the digital assets requires a similar code of conduct that will explain the existing rules and provide confidence to the regulators and the investors in order to make trust in the market.”
Reportedly, ADAM’s code of conduct will be launched to work as a counterpart to the existing rules and regulations so as to speed up fair and managed digital asset markets where capital can transact with full faith.
In the month of October, Circle-a crypto finance company announced that it is going to take part in the Global Digital Finance industry as a founding member. The GDF is creating its own code of conduct for the cryptocurrencies which will serve as a book of rules concerning matters like money laundering, risk management, and market practices etc.