Cardano Foundation Joins Industry Membership Group to Establish Regulatory Guidelines for Crypto

The Cardano Foundation, one of the three organizations involved in the development of the Cardano blockchain and its ADA cryptocurrency, has recently joined Global Digital Finance (GDF), an industry trade group, to help set regulatory guidelines for the cryptocurrency space.

According to Finance Magnates, citing an official announcement, the Cardano Foundation went through a “mandatory rigorous process” to join the London-based industry membership organization GDF, which sets a “comprehensive code of conduct and overarching principles” when it comes to token sales, platforms, and fund managers.

The organization reportedly also rates the websites of its members to ensure compliance with specific standards. Joining GDF means the Cardano Foundation entered several working groups revolving around know your customer (KYC) and anti-money laundering (AML) requirements, stablecoins, custody, and security tokens.

The organizations, Finance Magnates reports, will also work on the tax treatment of cryptocurrencies and its markets’ integrity. Bakyt Azimkanov, the Foundation’s PR and marketing director, was quoted as saying:

The collaboration between the Cardano Foundation and GDF will strengthen ongoing efforts to create best practices and sound governance policies.

The Cardano Foundation, as mentioned above, is one of the three organizations focusing on the development of the Cardano blockchain along with IOHK and EMURGO. Charles Hoskinson, its founder, has recently revealed he believes it can outcompete Facebook’s Libra in emerging markets.

Last month, Cardano launched a staking testnet for its long-awaited Shelley upgrade, which will see it get rid of miners and start relying on a proof-of-stake (PoS)-based system. With it will come a new consensus protocol called Ouroboros BFT.