New Consortium of Crypto Exchanges Aims To Further “Market Integrity”

A new consortium of leading digital asset players wants to commit to a “safe and sensibly-regulated crypto industry.”

Pledge To Combat Market Abuse and Manipulation

At a time when the industry has drawn fire for failing to eliminate bad actors, a group of crypto exchanges launched a consortium to crack down on crypto “market manipulation and abuse.”

Dubbed Crypto Market Integrity Coalition (CMIC), the alliance of 17 crypto exchanges comprises Coinbase, BitMEX, Circle – that launched USDC stablecoin, Anchorage Digital, among others.

Per a Monday announcement, crypto-native risk management firm Solidus Labs initiated the bloc and has called industry members to sign a pledge of “market integrity.”

“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,”

Asaf Meir, Co-founder and Chief Executive of Solidus Labs said.

The “market integrity pledge” is focused on working towards risk monitoring, consumer protection and compliance, to prevent market abuse.

Furthermore, the coalition explained that it will initiate training programs, share insights and research, dialoguing with regulators, in the future.

Crypto and Regulatory Controversies

Regulators across the globe remain concerned when it comes to investors’ safety, even as the crypto world continues to grow.

The Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has been reiterating that the crypto industry needs stringent regulations and consumer protection laws.

The SEC has been rejecting several spot Bitcoin ETF applications, citing the potential for market manipulation as one of the primary reasons. The White House has also been involved in regulating the crypto market, causing some market angst.

While in the U.K., the Financial Conduct Authority (FCA) has repeatedly warned consumers against the industry, to be prepared to “lose all their money” should they invest in cryptos.

The coalition is a major recognition of the potential for crypto manipulation; however, it remains to be seen how it can have a positive impact on the industry.