The Blockchain Association, which takes pride in being a globally reputed organization of crypto industry leaders, has announced the launch of a new “Market Integrity Working Group.” The group has been constituted to empower the investors by improving the security set up of the crypto markets. The group will include renowned entities like Circle, Blockstack, Digital Currency Group, and Polychain Capital.
The team will be co-headed by two dignitaries, namely Rachel Nelson and Breanne Madigan. Rachel Nelson serves as the senior director and associate general counsel at Coinbase, while Breanne Madigan is the chief of global institutional markets at Ripple.
According to the official statement released by the Association, the prime objective of the newly formed group is to manifest “transparency and fairness of cryptocurrency markets.” The group members will put in their joint efforts to solve the issues hovering over the genuineness of the trading volume figures released by the exchanges. Thus, allowing the establishment of an interface that can clear the allegations imposed on the working of the trading exchanges. The organization acknowledges the fact that the digital currency arena is highly unregulated in the United States, which in turn leads to widespread problems concerning market manipulation and fake data. With such problems being widely prevalent in the industry, digital assets fail to earn legal status in the financial world.
A whopping 95% of the total Bitcoin trading volume in various cryptocurrency exchanges were revealed to be false by the report released by Bitwise. Another report published by the firm Alameda Research also highlighted the same crisis. The report released in September stated that nearly 66.4% of the whole crypto trading volume was fake. The data released by these reports further ignited the debate on the security and genuineness of crypto exchanges. Regulatory watchdogs like the US Securities and Exchange Commission and the Commodity Futures Trading Commission have shown their concerns for the security of crypto exchanges. SEC stated that it would approve the setting up of an ETF only after being confident that it does not promote manipulation of facts and figures.
The group quoted,
Consumers and cryptocurrency exchanges deserve a clear regulatory framework, the establishment of which would ultimately enhance market integrity and drive consumer adoption of cryptocurrencies.