Crypto Industry Leaders Including R3, Circle, Coinbase, and ConsenSys Post A List Of Conduct Rules
The Global Digital Finance (GDF) is an important industry body that has recently announced a new Code of Conduct that will be used globally to set the industry forward and to create a paradigm of how this new industry should be.
The GDF was created by many of the most important companies in the crypto circle: the conglomerate R3, Circle, Coinbase, ConsenSys, DLA Piper, Diginex and Hogan Lovells. The company has offices that are based in London, Hong Kong and New York City. Its founding members are focused on creating a global strategy for the sector and want to create a united community that will follow the GDF’s code of conduct.
📣 We’re excited to announce #cryptoasset global leaders @circlepay, @coinbase, @ConsenSys, @DLA_Piper, @DiginexGlobal, @HoganLovells and @inside_r3 as GDF Founding Members who will support developing our global strategy and growing our community. https://t.co/6IV9xUTPyC pic.twitter.com/wL80S0lvYq
— Global Digital Finance (@GlobalDigitalFi) October 31, 2018
Also known as the GDF Code, this new Code of Conduct had several mini-summits made in Asia, Europe and the United States which defined several small portions of the code. After the vote, the document was open for public consultation for 60 days. It was signed by over 200 companies and 100 individuals. They all provided feedback for the Code.
The document touches upon many issues like relationships with clients, how to handle money, risk management, practices of the market, etc and represents a set of standards that will be used by all the companies involved in the partnership.
Our Europe/USA mini summit this afternoon focused on ascribing to the GDF code and an update on the registration and membership model, targeted for Jan ‘19. Get involved! https://t.co/YF7IzEbQhz pic.twitter.com/WBUfE1Dwjf
— Global Digital Finance (@GlobalDigitalFi) October 29, 2018
Jeremy Allaire, the CEO of Circle, has affirmed that this code can be essential for building public trust and to democratize finances using the blockchain technology. Simon Taylor, a co-founder of the GDF organization, affirmed that the customers, now more than ever, want to know how to companies are doing business and if they are ethical.
At the moment, the Global Digital Finance Code of Conduct has three parts:
- Overarching Principles
- Principles for Token Sales and Token Sale Service Providers
- Principles for Token Trading Platforms
A Need For Regulation
Governments and agencies all around the world are concerned with the regulation of the crypto market and the Code of Conduct can be a good starter. As it was created by organizations within the crypto system, it can be a good initial framework.
Some areas like Initial Coin Offerings (ICOs) and cryptos have become very tumultuous lately, so many agents in the financial system are eager to help them be compliant to preserve the integrity of the financial system. Companies that adhere to the code will show to their clients and the government that they can be trusted, the UK CEO of Coinbase believes.
Zeeshan Feroz, the CEO, also believes that the individuals need to be able to distinguish a crypto business that is trying to push boundaries in technology to benefit the clients from the other who are trying to push the boundaries of the law for their own profit.
The co-founder of R3, Todd McDonald, stated that the Code has a vital importance for companies that want to demonstrate to the regulators that they can adopt professional practices and protect their customers in a professional manner.
Regulators are also reported to be supportive of this new code created by the GDF as it can provide one jurisdiction that can have authority over the market, which could help to solve the issues.
Companies Will Be Able To Register in 2019
During the first quarter of 2019 new companies will be able to register with the GDF to prove that they follow the code. This would make them more trustworthy to investors and clients all over the world and can certainly play a very important role in the future of the crypto market.
Martin Bartlam, International Group Head of Finance and Global FinTech Co-chair at DLA Piper, has affirmed that the main importance of this collaboration would be because the cryptos have a natural cross-border nature and this means that they will need these standards to show investors that they can be trusted.
Will the Code be a success? That depends on many issues but you can trust us to report on what’s happening in the industry.