The Association for Digital Asset Markets (ADAM), led by a group of financial firms – BTIG, Cumberland, Genesis Global, Hudson Rive, GSR, Galaxy Digital, Paxos, BitOoda, Symbiont and XBTO – vows to advance a just and orderly digital asset market
The cryptocurrency and digital asset market as a whole is experiencing the disadvantages of a lack of regulation that fits perfectly with its nature. There are no clear rules or standards that preside over the industry.
Confusion and fraud are some of the aftereffects of this deficiency of rules. This dissuades institutional investors from engaging with the nascent marketplace. It is also said to hold back the benefits that come from its promising fundamental technology.
In the 18th century when there was a lack of governmental parameters that guide the market, stock brokers of that time took the route of self-governance by facilitating their very own policies to regulate the market and its participants.
In today’s industry, ADAM seeks to advance a fair digital asset market by pledging to safeguard all participants from market manipulation and fraud, administer well-defined standards for market activities, push for ethical conduct, and heighten information transparency for the public and governments.
ADAM was created for the sake of digital asset participants where all can conduct trade and business with the assurance of safety and fairness.
The association has bases in the cities of Washington and New York.
Code of Conduct
The guidelines for establishing a set of rules that govern the overall market and its participants is termed as the ADAM Code of Conduct. The specifics of the Code require conditions to be met. These are:
- The Code must take shape within the structure of existing laws. It must provide clarity, without violating the law.
- It is crucial to use blockchain to incorporate compliance functions into the code, without any obstruction.
- The intercontinental characteristic of digital assets must be taken into account.
It is necessary for the Code of Conduct to cover all products and services within the digital asset market. It will also include rules for KYC and anti-money laundering (AML), risk management, data protection, and market integrity.
The ADAM Advisory Board consists of lawyers, academics, regulators, and industry professionals who are accomplished within their field.
Members of ADAM will vote for a Board of Directors who will approve the association’s activities.
The founding members of the association include BTIG, Cumberland, Galaxy Digital, GSR, Paxos, and Symbiont.
Other Associations Relevant to Blockchain and Cryptocurrencies
Various crypto-related companies have formed different groups all for advancing the technology.
Some of the groups are Blockchain Association, a DC lobbying group, spearheaded by companies such as Coinbase and Circle and the Japan Virtual Currency Exchange Association (JVCEA), formed in April 2018, comprised of 16 domestic licensed exchanges. It was granted self-regulatory capacity by Japan’s Financial Services Agency.