Self-regulation is the way forward for the crypto and blockchain industry
The Australian Digital Commerce Association (ADCA) has said that players in the blockchain and digital currency sectors shouldn’t wait for governments and regulators to impose rules but, instead, start the conversation on self-regulation.
Chief executive of the not-for-profit organisation Nicholas Giurietto said at this weekend’s Blocfest 2018 in Kuala Lumpur, Malaysia, that the ADCA had been formed in a bid to self-regulate.
His speech at the Blocfest event, Seeing Eye to Eye: How Can We Work Better with Governments and Regulators, explained how the ADCA’s code of conduct was not arrived at autonomously, but was the result of dialogues with numerous parties – governmental, regulators of securities, financial services and tax authorities.
Concerns over money laundering
Giurietto (left) said that the government’s biggest concerns were that blockchain and cryptocurrencies would be used for money laundering and financing terrorism. The ADCA, therefore, was formed by a group of the sector’s biggest players to ensure the government didn’t intervene with heavy-handed regulation.
The meetings that followed its formation were an essential exercise in building trust and relationships, he said – an opportunity to educate the regulators and change their perceptions.
“The regulators are friends not enemies, their policy plans are usually sound, even if the execution is sometimes questionable,” Giurietto is quoted as saying in the Australian Star.
ADCA’s code of conduct
ADCA’s code of conduct includes the following requirements for cryptocurrency traders:
- Setting up trust accounts for customers’ funds
- Passing solvency tests
- Providing proof of adequate data protection
- Transparent pricing
- Channels for dispute resolution with customers
Giurietto added: “If you are following all the rules of our code, we believe it can be used as a defence – so even when a company is unsure of the law, it can prove that best efforts were made.”