Association of Digital Asset Markets Founded, Galaxy Digital In
The Association of Digital Asset Markets (ADAM), a nonprofit organization geared toward cryptoeconomy maturation via self governance, announced its launch on November 27th. Recognizable founding members include Michael Novogratz’s Galaxy Digital and the Paxos stablecoin team.
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ADAM Arises: ‘Not an Altruistic Endeavor But a Practical One’
It’s time to set market standards that cryptocurrency enterprises and regulators alike can live with.
That’s per ADAM, the new 501(c) nonprofit launched by 10 founding members to “promulgate standards applicable to digital asset market participants” for the purpose of creating “fair and orderly digital asset markets.”
— Michael Novogratz (@novogratz) November 27, 2018
Citing the “self-governing approach” that’s been the “centerpiece of the regulation of stock brokers” for more than 200 years, the Association said they’d be focusing on establishing standards that would inform and complement, and not compete with, government regulations.
As such, ADAM said it will “codify” practices among its members that are aimed at furthering the “long-term interest of the [cryptocurrency] market.”
“ADAM will focus on creating a vibrant market in the U.S. that is efficient, compliant and that investors, traders, and entrepreneurs can trust,” the Association said.
“However, given the nature of the market, ADAM intends to participate in and convene efforts to develop global standards applicable to digital asset markets across important jurisdictions.”
No Substitute for Regulation, But ADAM to Be Proactive
For their part in creating a more transparent, ethical, and orderly cryptoeconomy, ADAM plans to draft a code of conduct that would foster a “high standard for conduct across a broad range of digital asset market products and services.”
The as-yet undrafted code of conduct will be leveraged to actualize trust and comfort among regulators and institutional investors, the Association said.
The 10 founding members of the self-governing body, which is private but “open to qualified organizations,” will be held to compliance by a soon-to-be elected Board of Directors.
Of the Association’s founding members, some of the more recognizable firms include Galaxy Digital, Michael Novogratz’s cryptocurrency bank; Paxos, creators of the Paxos Standard Token; and over-the-counter cryptocurrency titan Genesis Global Trading.
The bylaws ADAM is intending to create for its members deal with industry-centric arenas like cybersecurity, market manipulation mitigation, KYC and AML compliance, and more.
Crypto, Blockchain Associations See Boon in 2018
2018 has entailed a prolonged bear market for the cryptoeconomy, but that reality hasn’t stemmed the tide of digital asset groups flexing their fledgling muscles this year.
In August 2018, the Virtual Commodity Association Working Group (VCA), comprised of exchanges like bitFlyer USA, Bitstamp, Bittrex, and Gemini Trust Company, announced its launch.
Similar to ADAM, the VCA is an “industry-sponsored, self-regulatory organization (SRO) to oversee virtual commodity marketplaces.”
In September, cryptoeconomy heavyweights like Coinbase and Polychain Capital came together to form the Blockchain Association, a lobby group aimed at advocating for pro-blockchain and pro-cryptocurrency legislation in the U.S.
Over in Russia, the nation’s Association of Crypto Industry and Blockchain created a series of proposed amendments to a long-awaited domestic draft law on cryptocurrencies.
Strength in numbers, as the saying goes.
What’s your take? Is the Association of Digital Asset Markets needed or unnecessary? Let us know in the comments section below.
Images via ADAM, Pixabay