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Minimum Standards and Best Practices Implemented to Ensure Appropriate Handling of Customer Digital Assets and Funds by Centralized Crypto and Digital Assets Businesses

Chicago, Illinois - March 24, 2023 - The Global Digital Asset and Cryptocurrency Association, the preeminent self-regulatory association for the digital asset and cryptocurrency industry, announces the following Core Principles in response to the bankruptcies of several prominent businesses that caused substantial harm to a significant number of customers and investors. Digital asset businesses that serve as intermediaries or fiduciaries of customer assets and property will be expected to adhere to these Core Principles, in addition to any applicable laws and regulations.

The Core Principles for centralized digital assets businesses are as follows:

Strong Governance and System of Checks and Balances

Protection of Customer Assets

Enterprise Risk Management and Stress Testing

Liquidity Reserves

Proper Books and Records

Annual Independent Audit

These Core PrinciplesPrinciples were designed to provide guardrails that guide digital asset industry maturation, protection of consumers and enhanced market integrity, said Gabriella Kusz, CEO of the Global Digital Asset and Cryptocurrency Association. Global DCA Core Principles not only outline best practices but offer a roadmap for digital asset firms seeking to develop in-line with global best practice.

"In the face of industry upheaval, digital asset services must proactively demonstrate a strong grounding in principles for responsible governance, which are essential to reinforcing consumer safety and risk mitigation moving forward." said Amit Sharma, founder and CEO of FinClusive. "We're proud to be working with Global DCA to put these core principles forward for the digital assets industry."

The recent failures were due, at least in part, to failures to implement certain fundamental business conduct and governance, risk management, and customer protection processes and procedures, as well as failures to implement adequate disclosures regarding the handling of customer funds and assets and the core use and operation of specifically issued tokens, the presence of which could have avoided these catastrophic events or at the very least mitigated their impact.

These Core Principles are not intended for use by decentralized businesses. Rather, they are focused on digital asset businesses that serve as intermediaries or fiduciaries of customer assets and property. The terms intermediaries" or fiduciaries for these purposes do not include software developers, miners/validators, personal wallet software, bridging technologies without a single controller, or any other decentralized network, application or platform.

The Core Principles are not intended to replace any applicable regulation. Specific applicable regulation would take precedence over the relevant Core Principle.

About the Global Digital Asset and Cryptocurrency Association

The Global DCA is a global self-regulatory association for the digital asset & cryptocurrency industry. It was established to guide the evolution of digital assets, cryptocurrencies, and the underlying blockchain technology within a regulatory framework designed to build public trust, foster market integrity, and maximize economic opportunity for all participants. Its broad-based membership includes exchanges, proprietary trading firms, traders, investors, asset managers, brokerage firms, FCMs, custodians, decentralized technology organizations, banks, legal firms, audit firms, insurance professionals, academics, consultants, & media.

For more information, visithttps://global-dca.org/core-principles/

Source: Global Digital Asset and Cryptocurrency Association

Media ContactCompany Name: Global Digital Asset and Cryptocurrency AssociationContact Person: David TrianaEmail: Send EmailPhone: 2397381052Country: United StatesWebsite: http://www.otterpr.com

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