Crypto Companies Join Forces To Combat Market Manipulation And Promote Integrity

17 Crypto Firms Form New Coalition

In a statement published on Monday (February 7, 2022), a new coalition, called Crypto Market Integrity Coalition (CMIC), was initiated by Solidus Lab, a New York-based surveillance and risk-monitoring firm. The CMIC is a pledge by companies to ensure consumer protection, improve confidence in the digital assets industry, and fight against market manipulation and abuse.

Along with Solidus Labs, founding members of the CMIC include crypto Coinbase, Bitstamp, Huobi Tech, BitMEX, Anchorage Digital, GSR, Securrency, CrossTower, Circle Internet Financial, CryptoCompare, and Chamber of Digital Commerce. Other firms include MV Index Solution, Global Digital Finance, Liberty City Ventures, CryptoUK, and Elwood Technologies.

While the CMIC currently comprises 17 members, the group is encouraging other stakeholders in the cryptocurrency industry to join the coalition and help improve the burgeoning sector. The coalition also has plans to engage with regulators, introduce advanced training programs, and share insights and research.

Commenting on the latest development, Asaf Meir, the co-founder and CEO of Solidus Labs, said:

“The public and regulators have made their concerns clear, and the pledge’s initial goal is to bring unity and action at an industry level, across CeFi, DeFi, and all digital assets. Crypto is in a very different place than it was three or four years ago—there are crypto firms today with more robust and technologically advanced risk and compliance programs than traditional institutions.”

Also, Circle’s Chief Strategy Officer and Head of Global Policy, Dante Disparte, said:

“Harmonizing a broad global approach to digital assets and competition in the digital currency space race can improve U.S. competitiveness, security, and lower fundamental costs for basic financial access. CMIC’s pledge brings leading industry participants together to advance market integrity standards.”

Crypto Regulatory Policies a Priority

Meanwhile, the formation of the CMIC comes at a time when regulators and governments globally have been calling for more stringent policies for the crypto industry. The argument has been that the cryptocurrency sector is rife with risks–such as hyper volatility–thereby making the industry perilous for inexperienced investors.

The United Kingdom’s Financial Conduct Authority (FCA) has issued several warnings in the past about investing in crypto projects that promise hyperbolic returns. The FCA has also blacklisted cryptocurrency firms operating without a license in the UK.

Japan’s Financial Services Agency (FSA) also maintains a strict regulatory oversight over the Japanese crypto industry. In the United States, the Securities and Exchange Commission (SEC) continues to reject applications for a spot Bitcoin exchange-traded fund (ETF), citing market manipulation and fraud as the main reasons for the disapproval.

Recently, cryptocurrency exchange giant Binance has come under regulatory pressure, with regulators in different parts of the United States stating that the company was carrying out unlicensed operations. While Binance seems to be mending its relationship with regulatory agencies, a report by Reuters back in January alleged that the cryptocurrency exchange withheld information from regulators.

Though the CMIC is still in its infancy, its promises of cooperative oversight represent a welcome development: protecting consumers in an ever-changing marketplace through heightened transparency while guarding against pervasive market manipulation.

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