Silk Legal has joined as a member of the Global Digital Finance Group (“GDF”), a self-regulatory body committed to the adoption of best practices surrounding digital assets and digital financial technologies. The GDF believes that as the adoption of blockchain technology becomes increasingly prevalent, certain standards must be maintained in order to validate the industry as a genuine avenue for change in the fintech space. Sharing these principles, Silk Legal looks forward to becoming a contributing member of the group and the work they are conducting towards the legitimization of blockchain.
As a member, Silk Legal will agree to uphold the GDF’s Code of Conduct which has been designed to work across a range of businesses and stakeholders involved in digital assets – whether they are token issuers, e-commerce platforms, or even law firms dealing with blockchain projects. Thus, Silk Legal will observe certain practices in compliance with the Code of Conduct which are summarized accordingly:
- When dealing with businesses or projects involved with blockchain or digital assets, Silk Legal will comply and encourage compliance with laws governing digital asset businesses as well as AML, counter-terrorism measures, and securities regulations. The firm will also commit itself to mitigating criminal and unlawful activities that affect stakeholders involved in blockchain through the observation of consumer protection laws, namely with regard to data privacy, contracts, and access to information.
- Silk Legal will likewise conduct thorough due diligence procedures to examine prospective clients and projects that seek to partake in the blockchain space. In this rein, the firm will deter, identify, and report incidents or potential incidents of financial crimes that may cause harm to stakeholders in the space and the industry as a whole.
- The firm will also warrant that all its dealings should implement transparent legal and corporate governance that protects Silk Legal’s interests and those of their clients. This means appointing qualified individuals who are familiar with blockchain technology, regulations that apply to them, and the financial inferences involved in operating a business in this space.
- With regard to the operation of a project or business involved in blockchain or digital assets, Silk Legal will require clients and stakeholders to have a high degree of competence in relation to the mitigation of risks that may put others at a detriment. This also means requiring clients to have sufficient procedures that will properly compensate their affiliates in the event of an extraordinary circumstance.
In addition to observing the GDF’s Code of Conduct, Silk Legal will also agree to be active as a contributing member of the group to ensure the longevity of the Code, which may be amended periodically. Silk Legal will also provide notices of issues or contentions that may have detrimental effects on the blockchain industry in order to allow the GDF to respond in an appropriate manner.
“Having been involved in the blockchain and fintech space for a considerable amount of time, the Silk Legal team and I are pleased to be involved in the proliferation of global standards that would propel the industry forward as a legitimate development that brings positive changes,” said Managing Partner Dr. Jason Corbett.
“We will remain committed to the group’s values and contribute towards its enrichment.”
As a law firm that specializes in fintech and blockchain, Silk Legal looks forward to becoming an integral part of the step towards the mainstreaming of blockchain technology through a set of global standards. The firm will do its utmost to uphold the principles of the GDF and act as a model for firms involved in the blockchain space.