Major Firms Launch the Crypto Market Integrity Coalition to Crackdown Manipulation

Reuters | Hannah Lang | Feb 7, 2022

crypto exchanges launch market integrity coalition - Major Firms Launch the Crypto Market Integrity Coalition to Crackdown ManipulationThe new alliance and pledge comes as regulators remain concerned the new market is safe for investors, despite its surge in popularity.

A group of major cryptocurrency firms including Coinbase, Circle, Anchorage Digital and Huobi Global are forming a new coalition aimed at cracking down on market manipulation in an effort to instill trust in the burgeoning digital asset industry.

The Crypto Market Integrity Coalition, which was convened by risk-monitoring software company Solidus Labs, is also urging digital currency companies to sign a “market integrity” pledge that acknowledges the potential for fraud in the cryptocurrency space and the need for the industry to protect investors.

See:  IRS Special Agent “Seeing ‘Mountains Of Fraud in Cryptocurrencies, NFTs”

Kathy Kraninger, vice president of regulatory affairs at Solidus Labs and former director of the Consumer Financial Protection Bureau said:

“It really is about recognizing that you need entities that are focused on a fair and orderly system here, and really trying to prevent the abuses that can happen if you're not paying attention.”

The new alliance and pledge comes as regulators remain concerned the new market is safe for investors, despite its surge in popularity. The Securities and Exchange Commission has cited the potential for market manipulation as one of the primary reasons for rejecting several applications for spot bitcoin exchange-traded funds.

Most recently, the markets regulator vetoed a proposal from Fidelity’s Wise Origin Bitcoin Trust to offer an ETF that would track the cryptocurrency, determining that it did not meet the standards designed to prevent fraudulent and manipulative practices.

See: Industry warns Congress the U.S. risks ‘chilling’ regulations on crypto

In December, the Bank for International Settlements called for more regulatory safeguards to prevent crypto fraud, arguing that the limited application of anti-money laundering rules, along with transaction anonymity, exposes DeFi to illegal activities and market manipulation.

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