Several cryptocurrency exchanges and interest groups in different countries have formed a coalition to fight market manipulation.
In an announcement Monday, market surveillance firm Solidus Labs and exchanges including Bitstamp, Coinbase, BitMEX and CrossTower said they would form the Crypto Market Integrity Coalition (CMIC) and urged all other companies involved in the crypto space to follow their lead . According to CMIC, members must commit to “promoting a fair marketplace for digital assets to combat market abuse and manipulation and promote public and regulatory trust” in crypto.
The group’s 17 founding members include US-based crypto advocacy group Chamber of Digital Commerce, UK-based self-regulatory trade association CryptoUK and international think tank Global Digital Finance. Also joining the coalition of crypto data providers are CryptoCompare, Anchorage Digital, the first crypto company to receive a charter from the United States National Banking Authority, and Circle, the company behind USDC stablecoin.
CMIC’s pledge includes a commitment to “maintain fair and orderly markets in digital assets and prevent market abuse.” The group said it plans to eventually share its own research on crypto, as well as engage in dialogue with regulators and consider a framework for data sharing and joint monitoring.
“Harmonizing a broad global approach to digital assets and competing in the digital currency race can improve US competitiveness and security and lower the underlying costs of basic financial access,” said Dante Disparte, Chief Strategy Officer and Head of Global Circle’s policy. “The CMIC promise brings together leading industry participants to advance market integrity standards.”
According to the CMIC website, the pledge requires members to agree to the following:
“Notwithstanding regulatory requirements, market activities should be subject to appropriate ongoing review and monitoring to detect and eliminate market manipulation and unfair market abuse. Clear cases of fraud and tampering are illegal and we are committed to doing our best to prevent these activities.”
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Crypto firms and industry leaders have formed other groups aimed at addressing challenges in mainstream and inter-regulatory adoption. In September 2020, Square — now Block — formed a consortium with the goal of bundling crypto and blockchain-related patents to “defend against patent attackers and trolls.” In February 2021, Chainlink, Aave, Messari and others formed the GoodFi Alliance to focus on advancing education and research in the field of decentralized finance.