For any industry to thrive, there has to be a code of conduct that participants follow. This has been lacking in the Cryptocurrency industry and many critics have been referring to it as the wild west of the modern age.
However, this is about to change following the establishment of the Global Digital Finance (GDF) body. The institution’s members are R3, Hogan Lovells, Digitex, DLA Piper, ConsenSys, Coinbase, and Circle. Plans are underway to bring more members on board and widen its coverage. The GDF falls under the category of non-profit organizations and has centres of operation in New York, Hong Kong, and London. Hong Kong is designed for Asia, London is dedicated for Europe and Africa, and The New York office will serve the Americas. The members have released a code of conduct that will drive sustainable innovation on the Cryptocurrency space.
The Crypto Code Of Conduct
The founding members of the GDF believe that a code of conduct will streamline the Crypto industry and harmonize operations. They have so far conducted a series of summits and consultative meetings in the USA, Europe, and Asia. In doing so, they have been able to come up with a unified approach that stipulates about the Taxonomy for Cryptographic Assets and the Cryptocurrency industry Code of Conduct that is dubbed as the GDF Code.
The GDF Code is very relevant since the team received feedback from over 100 individuals and 200 companies from all over the world. The process of writing the standards was conducted in three months ending 31st of August 2018. Without a doubt, the GDF is a unified global strategy.
Additionally, The GDF Code has the support of non-governmental organizations, standard-setting bodies, and global regulators.
The Code Of Conduct Is Meant To Build Public Trust
All Blockchain firms that join the institution will be required to adhere to set guidelines as per the agreement that guarantees ethical practices and the highest professional standards. The rules will revolutionize the marketplace, risk management, money handling, and protocols with clients in the Crypto world.
Explicitly, the GDF code comprises of three major parts which are; Principles for Token Platforms, Principles for Token Sales, and Overarching Principles. There are other two parts- Principles for Rating Websites and Principles for Funds- that are being deliberated upon. It is expected that the GDF will conclude the exercise of consultative meeting and widespread studies on 31st January 2019.
The CEO of Circle, Jeremy Allaire, is applauding the GDF for enabling Circle and other Blockchain firms that offer Cryptocurrencies to build public trust. He also recognizes the role that the GDF code will play in facilitating the democratization of finance using Blockchain technology and Crypto Assets.
The UK CEO of Coinbase, Zeeshan Feroz, is also positive about the GDF. He says that clients will be willing to engage with Crypto firms more openly since they have the assurance that they are not breaking international law or ethical practices of business.
The GDF Code Implications
The implications of the GDF is that it will combine efforts with government regulators who have been trying to devise policies to guide Crypto markets. Additionally, it will be an important tool for self-regulation. Registration is commencing in Q1 2019.