Self-regulation: US association ADAM draws up code of conduct for crypto companies

29. November 2018 Aus Von admin

Well-known companies from the US crypto ecosystem are joining forces to form the Association for Digital Asset Markets (ADAM). The aim of the association is to establish rules of conduct for companies operating in the crypto market. As one of the first official acts, ADAM therefore announces the publication of a code of conduct.

The matter of regulation is complicated. Because unclear regulatory guidelines and the investigations against a whole series of ICOs in the USA clearly show one thing: the crypto market remains in the Wild West.

A current example of this is the Envion case. After crooked deals and a secret capital increase, the Swiss ICO is insolvent and leaves behind a large number of damaged investors, as BTC-ECHO reported.

Code of conduct planned for the Bitcoin revolution

One of the Association’s first Bitcoin revolution projects is therefore the publication of a Code of Conduct for companies operating on the Bitcoin revolution. The ADAM wants to address above all the topics of responsible trading of digital investments as well as ethical behaviour and transparency of business practices.

Such reports, however, damage the entire crypto landscape. Since the news about failed ICOs has been overturning, the scene has acquired an increasingly dubious image. ADAM wants to change this.

As the association announced on 27 November, it wants to do something about this toxic development. Finally, the association sees an urgent need for action with regard to crypto regulation:

„At best, the regulatory gaps create doubts and ambiguity for market participants. In the worst case, they promote fraud“.

Furthermore, ADAM intends to engage in crypto lobbying. The press release states, „ADAM intends to earn the long-term trust of policy makers. Through such efforts, ADAM will accelerate the formation of fair and orderly markets so that investors can operate in the market.

Galaxy Digital among the Bitcoin revolution members

The founding members of Bitcoin revolution are ten well-known companies from the US crypto environment. These include Cumberland, Galaxy Digital and the Stable Coin Paxos:

However, Duncan Niederauer, former CEO of the New York Stock Exchange, is the most prominent member of the board of directors of the merger. In the press release, Niederauer emphasizes the importance of conglomerates such as ADAM:

„Rules are of fundamental importance for the development of any market. More than 200 years ago, market leaders came together to draft rules that led to the creation of the New York Stock Exchange. The emergence of digital assets requires similar efforts that will clarify existing rules and give both investors and regulators the confidence they need to sustain this market.“

According to the merger, the number of members is expected to grow. Membership is open to companies from the crypto ecosystem.