The Global Digital Finance (GDF) has announced their new Code of Conduct rules—GDF Code. The list will set the industry standards for digital assets worldwide. The GDF is a body made up of the heaviest hitting companies in the crypto community: R3, Circle, Coinbase, ConsenSys, DLA Piper, Diginex and Hogan Lovells, and the conglomerate. The group’s founders are looking to unite the crypto community under one code of conduct to create a baseline for best practices.
Several summits were held in Asia, Europe, and the U.S. to discuss and outline parts of GDF Code. The group then took a vote and opened the document for a 60-day public consultation period. Over 200 different companies and 100 selected individuals critiqued the Code and sent it back for final review.
What is in the Code?
The list of rules addresses client relationships, security, risk management, best practices, handling funds, and more. The purpose of the document isn’t just to standardize the industry, it is a vehicle for rebuilding crypto’s very damaged reputation. Customers want the level of transparency that blockchain technology has promised. There is a social aspect to this beyond the public ledger that companies have to take on themselves, and in this case, the GDF has decided to take matters into their own hands for the sake of the entire industry.
The Code of Conduct has three sections: Overarching Principles, Principles for Token Sales and Token Sale Service Providers, and Principles for Token Trading Platforms. This framework is only the beginning for crypto regulation. It is a good example of cross-border collaboration that the crypto industry will need a lot of in the future.
Even though these rules have no higher jurisdiction than the body that created them if companies can say they are “GDF Code Compliant” it can signal to the government and clients that they are serious businesses with industry standards in place.
“The Code has a vital importance for companies that want to demonstrate to the regulators that they can adopt professional practices,” said Todd McDonald, R3 co-founder.
Starting in 2019 new companies will be able to join up with the GDF. Registration will open during the first quarter of 2019. The GDF hopes that it will become common practice for reputable crypto companies to have their GDF badge. Whether the code will be effective in improving crypto industry standards has yet to be determined, however, the GDF is setting the pace for rules of conduct and global collaboration for these new universal assets.