Digital currency protected by new industry code

The first Australian Digital Currency Industry Code of Conduct has been launched by the Australian Digital Currency and Commerce Association (ADCCA).

The code is designed to protect digital currency and assist consumers in identifying digital currency businesses that have best practice standards put in place.

In developing the code, the ADCCA Committee reviewed relevant international standards and operational processes as well as licensing and regulatory requirements for similar industries in Australia.

“Given the digital currency sector is such a fast growing and innovative area of the economy, and because we know that the pace of change in technology and business models can often outrun the ability of both regulators and organisations to keep up, key players in the industry have come together to voluntarily create the Digital Currency Industry Code of Conduct,” said ADCCA CEO Nicholas Giurietto.

The ADCCA certified digital currency businesses will be listed on the ADCCA website and must prove to independent assessors that they meet the rigorous standards for certification.

The Digital Currency Industry Code of Conduct is a self-regulatory scheme and was developed in response to a recommendation of the senate enquiry into digital currencies from August 2015.

“It is all about making digital money safe,” said Richard Miller, a Deloitte advisory partner.

“Our collective aim is to develop standards of consumer protection that hold participants to account and to a very high standard of conduct.

“To do so in an innovative new area like blockchain technology, that is likely to have a major transformative influence on all business sectors in the next few years, including payments and the way we manage identity, is very exciting.”

The code of conduct also voluntarily adopts anti-money laundering and counterterrorism financing (AML/CTF) standards. The Australian government recently announced its intention to extend AML/CTF rules to new sectors including the digital currency sector.

“The self-regulatory model that we have developed gives Australian consumers confidence that they are dealing with a business with standards that they can trust, while implementing AML/CTF safeguards,” said Giurietto.

“Importantly, it provides a platform for the growth of this innovative sector that will ensure Australian businesses do not miss out and will allow the nation to fully participate in the emerging global transformation that blockchain technology will bring about.”

Image credit: ©Nito/Dollar Photo Club