Standards of Conduct in the Cryptocurrency Market

ČKMA, z.s. (hereinafter referred to as "ČKMA")

  1. supporting a clear and predictable legislative environment that reflects internationally recognized and proven practices, and
  2. with the aim of establishing a self-regulatory framework to promote fair conduct, prevent financial crime, and ensure compliance with legal regulations within the cryptocurrency market,

recommends the following standards for conduct in the cryptocurrency market (hereinafter referred to as the "Standards").

 

Part I. 

Definition and Purpose

  1. The purpose of these Standards is to define, in the form of recommendations, the fundamental rules that the following entities conducting business in the cryptocurrency sector should adhere to when providing cryptocurrency-related services within the territory of the Czech Republic. These entities include, in particular, those that:
    1.  facilitate the purchase and sale of cryptocurrencies (e.g., cryptocurrency exchanges, trading platforms, or operators of cryptocurrency ATMs);
    2.  operate cryptocurrency payment gateways or mediate other cryptocurrency transfers;
    3.  offer cryptocurrency wallet management or otherwise handle cryptocurrency assets on behalf of customers.

 

Part II. 

Principles of Conduct

2.1 High Standard of Conduct. Members of ČKMA (hereinafter referred to as "Members") act ethically and help clients and business partners (hereinafter referred to as "customers") understand their services in a way that enhances trust in cryptocurrencies, in accordance with the ČKMA Code of Ethics.

2.2 Compliance with Legal Regulations and Cooperation with public Authorities. Members take all necessary measures to ensure that their activities comply with the applicable legal framework, including civil, commercial, criminal, tax, and accounting regulations. When required, they provide cooperation to competent authorities in accordance with applicable laws to properly investigate and rectify any unlawful conduct.

2.3 Responsible Conduct Toward Customers. Members act responsibly toward customers, informing them of business terms, fees, risks, and other critical factors related to their business activities. Members protect customers' personal data and confidential information in compliance with relevant legal regulations.

2.4 Respectful, Transparent, and Non-Misleading Communication with Customers. All communication with customers must be respectful, clear, and non-misleading. Members must have a system in place for receiving and addressing customer feedback and complaints.

2.5 Disclosure of Information. Members must publish essential information about their company and services, including significant changes relevant to customers, on their official websites.

2.6 Responsible Handling of entrusted funds. Members manage customer assets separately from their own, whether in the form of cryptocurrency, fiat currency, or other assets, ensuring the protection of customer funds. They only hold the necessary portion of customers' cryptocurrency assets in online (hot) wallets, for liquidity or settlement purposes.

2.7 Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Measures. Members adhere to the "Know Your Customer" (KYC) principle and have systems in place to detect suspicious transactions in compliance with applicable regulations. They do not conduct transactions suspected of being linked to money laundering or terrorist financing. Additionally, they comply with obligations under the Czech AML Act, particularly in customer identification and monitoring.

2.8 Market Abuse Prevention. Members have processes in place to detect attempts at price manipulation and do not engage in transactions that exhibit characteristics of market abuse or manipulative behavior.

2.9 Control and management system. Members implement risk assessment and independent control systems to conduct their business responsibly and securely, considering their size, business model, and organizational structure. They also have procedures for change management, crisis management, and business continuity planning.

2.10 IT Security and Protection. Members ensure the security of customer accounts and IT systems, including regular updates to maintain security standards.

2.11 Conflict of Interest Prevention. Members have measures in place to prevent and disclose conflicts of interest that may arise in their operations.

Part III. 

Compliance with Principles

3.1 Members who have committed to adhering to these Standards with ČKMA pledge to apply all the principles stated in this document.

3.2 ČKMA maintains a record of members who have committed to complying with the Standards.

3.3 ČKMA supports the adoption of the principles of conduct outlined in Part II across the cryptocurrency services market.

Part IV. 

Final Provisions

4.1 These Standards were published with effect as of April 15, 2020.