Blockchain, FinTech Firms To Create Code Of Conduct For Crypto Markets

Group, News | November 29, 2018 By:

The Association for Digital Asset Markets (ADAM) has been formed by ten financial services and technology firms to establish a Code of Conduct for cryptocurrency markets.

The founding members of ADAM include digital asset advisory firm BitOoda, global financial services firm BTIG, diversified merchant bank Galaxy Digital, OTC crypto dealer Genesis Global Trading, digital asset solutions provider GSR, multi-asset quantitative trading firm Hudson River Trading, blockchain firm Paxos, smart contracts platform Symbiont and cryptofinance firm XBTO.

ADAM will seek comprehensive standards for digital asset market participants in the United States. It will work with current and former regulators to provide rules for the efficient trading, custody, clearing and settlement of digital assets. The goal is to accelerate fair and orderly digital asset markets where innovators and capital can transact with confidence.

“Rules are fundamental to the development of any market,” said Duncan Niederauer, former CEO of the New York Stock Exchange (NYSE) and ADAM Advisory Board Member. “Over 200 years ago, market leaders came together to draft rules that led to the creation of the New York Stock Exchange.”

The first priority for ADAM is to create a code of conduct for participants in digital asset markets. Once ADAM’s code is adopted, mechanisms to monitor and enforce compliance will be developed. It will include guidelines for market integrity, risk management, KYC and AML, custody, record keeping, clearing and settlement, market manipulation, data protection, and research, among other topics. The association plans to publish a first working draft of the code in 2019.

“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,” Niederauer said. “I applaud the firms leading the ADAM initiative and look forward to advising them on standards that will enable this market to thrive.”