Coinbase, the biggest cryptocurrency exchange in the U.S has framed its core principles concerning the institutional financial products. Per a Medium blog post published on August 21 by Adam White, Vice President and General Manager at Coinbase, the crypto exchange outlined a set of principles to foster its institutional business.
The five principles will act as a roadmap for Coinbase to cement its position as the world’s most transparent and trusted crypto exchange for storing and trading digital currencies.
The Five Commandments
Principle One: Operate a Fair and Orderly Market
Coinbase aims to structure a market operations team that will control and regularly monitor crypto market health. Additionally, Coinbase will also administer a market surveillance function and actively follow the ethical business protocols to ensure honesty and nil suspicious activities in the cryptosphere.
Principle Two: Safeguard Customers with Institutional-grade Infrastructure and Processes
Coinbase will ensure highest level of security for its customer’s assets. The protection mechanism will consist of institutional-grade cybersecurity, compliance, onboarding processes and operating standards.
Principle Three: Enforce transparent market rules and governance
Access to current market rules will be made available to all the market participants. Coinbase will also distribute a market rulebook, which caters to the unique market dynamics of crypto assets. Some of the action points covered under this principle include commitment to ongoing independent 3rd party audits, prohibition of malicious trading activities, and transparency with regard to trading fee, among other things.
Principle Four: Provide fair access to all market participants
The penultimate principle seeks to provide equal access to all market participants irrespective of any factors, with the same rule set applicable to all the participating individuals or groups.
Principle Five: Publicly disclose listing practices and market rules
Lastly, Coinbase will make sure that addition of new crypto assets and instruments to the exchange is executed in a clear and transparent manner. Every new to-be listed asset will strictly adhere to a transparent listing process which will guarantee all the required regulatory and legal compliance. Any update to the listing process will be communicated publicly.
Appeasing the Big Players
Coinbase has been trying to establishing itself as a force to reckon among the institutional investors. On May 15, Adam White announced the launch of Coinbase Custody in a similar fashion. The product is specifically aimed to encourage institutional investors intrigued by the cryptocurrency market.
Inception of the aforementioned five principles will only bolster the goodwill of Coinbase as one of the premier crypto exchange in the crypto world.
