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Highlights
- The alliance comes amid concerns among regulators over investors’ safety in the market.
- Kathy Kraninger, vice president of regulatory affairs at Solidus Labs, which convened the coalition, stressed the need for an “orderly system” to prevent market manipulation.
- The group will initially focus on bringing more firms on board and signing its pledge.
Cryptocurrency exchange Coinbase Global and over a dozen other crypto firms have floated an alliance to prevent market frauds and instill trust in the growing digital currency industry, Reuters reported.
The other firms include Circle, Anchorage Digital, and Huobi Global. The report said the Crypto Market Integrity Coalition would urge digital asset companies to sign a “market integrity” pledge to protect investors’ interests, acknowledging the threat of potential fraud in the crypto space.
Kathy Kraninger, vice president of regulatory affairs at Solidus Labs, which convened the coalition, stressed the need for an “orderly system” to prevent frauds.
The alliance comes amid growing concerns among regulators over investors’ safety in the market.
Crypto Firms Launch Coalition To Crack Down On Market Frauds
The Securities and Exchange Commission had earlier highlighted the potential loophole for manipulation in the market. It recently rejected several applications for spot bitcoin exchange-traded funds (ETFs) that did not meet the standards to prevent frauds, including proposals from Fidelity and WisdomTree.
Last year, the Bank for International Settlements called for more safeguards to prevent fraud, contending that the limited regulatory oversight exposes DeFi to illegal activities.
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Coalition’s Plans
According to Reuters, other founding members of the group include BitMex, Bitstamp, CrossTower, CryptoCompare, Securrency, Elwood, Global Digital Finance, and CryptoUK.
The group will initially focus on bringing more firms on board and signing its pledge.
Eventually, it will collaborate with regulators for training programs and formulating frameworks to address transparency concerns in the crypto space.
In October last year, ProShares Bitcoin Strategy became the first bitcoin ETF to trade in a US stock exchange. The SEC also gave its nod to Valkyrie Bitcoin Strategy ETF and VanEck Bitcoin Strategy ETF.
