What is the Global DCA?
The Global DCA is a self-regulatory association which gathers the full breadth of industry participants to help shape the future of the digital asset and cryptocurrency industry and create a transparent, accountable infrastructure that promotes integrity in all aspects of the market.
Why was the Global DCA created?
The emergence of digital assets, cryptocurrencies, and the underlying blockchain technology has begun to transform the global monetary system. To better facilitate this transformation, the current regulatory environment must be enhanced to provide all participants with unambiguous regulations that provide accountability, integrity and transparency to prevent the exploitive behavior that can develop in rapidly evolving market segments.
The Global Digital Asset and Cryptocurrency Association (Global DCA) has been established to guide the evolution of this new technology within a regulatory framework designed to build public trust, foster market integrity and maximize economic opportunity for all participants.
What are the three strategic objectives of the Global DCA?
The Global DCA is guided by principles of accountability, integrity and transparency and seeks to fulfill the strategic objectives of:
- Regulatory Clarity. Advocating for a regulatory environment that facilitates innovation and protects consumers, stakeholders and the broader public interest worldwide;
- Standards Development and Implementation. Developing standards to guide the industry and employing a self-regulatory mechanism to advance standards alignment; and
- Education. Designing and delivering industry education, training and certification.
What makes the Global DCA unique? The Global DCA is unique in a few ways:
- Governance. The foundation of our organization is based upon global best practices and lessons learned on the nature, structure and function of self-regulatory associations.
- Transparency. The Global DCA will follow international best practice and provide transparency around organizational decision-making, activities and outcomes. A self-regulatory organization must fulfill responsibilities to not only communicate with its direct membership, but also with its broader stakeholders and the general public.
- Grassroots / Industry-led Movement. Key actors within the broad cryptocurrency and digital assets industry have recognized the importance and value in developing a self-regulatory approach to strengthening the industry. The Global DCA is the evolution and formalization of their efforts.
- Inclusion. The Global DCA recognizes the importance of inclusion in the industry – in particular the need to have representation from all segments of the industry (e.g., exchanges, traders, technologists, academics, etc.), from all regions around the world, and from differing levels of development (start-up, micro-, small-, medium-, and large-sized entities). Membership Pricing has been designed to minimize barriers to inclusion and to permit a broad-based approach to membership. In defining the membership base as well as its leadership, the Global DCA has sought to ensure representation from the many actors comprising the digital assets and cryptocurrency ecosystem.
- Independence. In designing the Board of Directors we have included a role for an Independent Director as well as two Board positions for Affiliate Members in order to facilitate a variety of perspectives and viewpoints in developing organizational direction and focus.
- Self-regulation. We are a self-regulatory association with a holistic approach to self-regulation based on the three core areas of (1) standards setting, (2) education and certification, and (3) enforcement. Although there are many industry associations, the Global DCA is the only organization which has stepped forward with a formal approach to self-regulation and a plan for addressing the most crucial aspect of self-regulation: enforcement.
- Arbitration. A core component of our self-regulatory offering (enforcement) will be the creation of an alternative dispute resolution forum. In response to survey and focus group findings, the Global DCA has developed Arbitration Rules and the structure for the industry. Drawing heavily from the 100+ years of experience of the National Grain and Feed Association (NGFA) arbitration system, the Global DCA Arbitration system, rules and resulting panels will offer a manner for resolving legal disputes with greater expertise and in a more responsive and less costly manner than is presently available.
How will the Global DCA “Self-regulate”?
The Global DCA has designed a self-regulatory mechanism that focuses on: standards setting, education and certification, and the utilization of market surveillance and enforcement mechanisms (including a dispute resolution forum). Global DCA self-regulation will be guided by the principles of accountability, integrity and transparency to promote the highest professional and ethical standards for its members and to achieve its overarching objective of promoting integrity in all aspects of the market.
As a first step, the Global DCA will use its Code of Conduct to raise awareness amongst its members of the obligations of membership, produce educational materials to support understanding and implementation in practice and then undertake monitoring and assessment activities to ensure alignment with the Code of Conduct and its principles.
Why would we go out of our way to create more regulation?
Industries that organize and self-regulate create a means by which the industry as a whole may improve the quality of services and products provided. What are the benefits of self-regulation?
- Strengthens the Industry. Self-regulation helps to strengthen the industry, raise quality and improve consumer protection.
- Improves Clarity. Reduces Costs. By providing clear standards and benchmarks for operations, product development and service delivery, self-regulation reduces legal and regulatory ambiguity and reduces the costs associated with navigating complex and ambiguous environments. .
- Increases Responsiveness of Regulation. Self-regulation allows regulatory evolution to keep “in step” with technological and market evolution. Additionally, the proximity of self-regulation to the industry facilitates responsiveness to emerging issues and key trends in the markets.
- Enhanced Quality of Regulation. In a rapidly evolving technological environment where expertise is difficult to attract and retain, a private sector self-regulatory organization may be well suited to developing effective and efficient regulations.
- Global DCA Self-Regulation Will be Harmonized. The approach of the Global DCA is not to create duplicate or additional requirements for regulated industries; but rather, to identify ambiguity or gaps in the current legal and regulatory framework, to develop standards and best practices to guide industry participants and to promote alignment. Harmonized regulation (regulation developed to exist in harmony with existing legal and regulatory requirements) will help to enhance the integrity of the markets and improve consumer confidence.
If the Global DCA supports self-regulation does that mean that you do not support regulation by government or independent agencies?
No. The Global DCA supports the creation of balanced regulation – i.e., regulation which balances the need for advancing technology and innovation with the need to protect consumers, stakeholders and the general public.
How does the Global DCA intend to position itself as relates to governments, agencies, and regulators?
The Global DCA seeks to act as a centre of excellence to these counterparts and provide industry perspective, member and stakeholder insight, and technical and industry expertise to support governments, agencies and independent regulators in developing balanced regulations.
Our focus and efforts are on working in partnership with various international, governmental and jurisdictional agencies and departments to promote the development of modern (up to date), clear legal and regulatory frameworks which embrace technology and innovation while protecting consumers and the public.
Our firm is really challenged by existing legislation and regulations. What is the Global DCA doing about this?
Around the world, digital asset and cryptocurrency businesses and service providers are challenged by outdated, ambiguous and complex legal and regulatory environments. Navigating these environments is costly and time-consuming.
In response to these challenges, the Global DCA recognizes legal and regulatory engagement as one of its three strategic objectives. Additionally, it has created a Public Policy and Regulation Committee to guide our policy and regulatory positioning, identify key national as well as international opportunities for engagement, and to lead dialogue and communication in this area. As we develop our organization and on-board our membership, we will continue to build our voice and footprint in these areas and represent our industry with integrity in our policy positions.