Circle, Anchorage Digital and Huobi Global are just some of the cryptocurrency companies that have decided to pool their efforts and clear the industry of market manipulation.
In doing so, they hope to resolve any transparency issues tarnishing the industry’s reputation.
The Crypto Market Integrity Coalition, established by Solidus Labs, will work in several directions. First, it asks of its participating members to sign a “market integrity” pledge that recognizes the issue and sets the companies on a course to protect retail consumers.
Retail consumers have been one of the main worries for governments which have not hesitated to prohibit advertisement that directly targets what regulators believe are less experienced investors.
“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”, said Solidus Labs VP of regulatory affairs Kathy Kraninger.
Market manipulation has long been one of the main worries for many regulators. The US Securities and Exchange Commission (SEC) has openly called this practice in the digital asset industry as one of the reasons why the regulator is so reluctant to pursue further action with regards to proper regulation. SEC even investigated Elon Musk over his Dogecoin tweets in 2021.
Because of the nature of the crypto industry, the Crypto Market Integrity Coalition has a tough job. While others, including CryptoCompare, BitMex, CrossTower and Bitstamp have joined, a clear path to triumph over fraud in the sector remains to be set.
For the time being, the coalition believes that its strength is in numbers, and it is focusing on bringing more companies on board. From there, it hopes to leverage their joint resources and respond to crypto fraud around the world.
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