- Cameron and Tyler Winklevoss created a new association to police the crypto realm
- The association, Virtual Commodity Association, which comprise Gemini, Bittrex, BitFlyer, and Bitstamp, will function as a crypto task force.
On Monday, 20th August 2018, a group of four crypto exchanges namely Gemini, Bittrex, BitFlyer and Bitstamp teamed together to form a new working group named Virtual Commodity Association (VCA).
According to market observers, the association, which was conceived by Cameron and Tyler Winklevoss, is intended to set in place new industry standards that are presently lacking in the $214 Bln digital currency space and could make big cryptocurrency investors be more comfortable with the crypto market.
The association, Virtual Commodity Association, would function as a crypto task force and could possibly bring the cryptocurrency markets to another level. The group would be a pioneer to the establishment of a self-regulatory organization for cryptocurrencies such as BTC and Ether.
Though the association was officially launched by the Winklevoss brothers, it has been joined by 3 other crypto platforms – Bittrex, BitFlyer USA, and Bitstamp to form a working group. Representatives from the 4 member-exchanges would come together for their first meeting in September to talk about establishing the self-regulatory organization.
According to the working group, the VCA would promote transparency in the crypto industry, develop new standards for the industry, as well as work with regulators such as the US CFTC to forestall market manipulations and fraud for cryptocurrencies such as BTC and ETH.
Maria Filipakis was named as the group’s interim executive director. Maria helped in the creation of BitLicense – the US’s cryptocurrency permit when she worked with the New York Department of Financial Services.
The US SEC, the US CFTC, and other regulators rely heavily on self-regulatory organizations to monitor trading in the largest US firms. Presently, there is no federal regulator with direct authority over cryptocurrency trading. Instead, there are patchworks of state laws which serve as the legal framework which some say brings potential manipulation and abuse.
Cryptona.co earlier reported that the Bitcoin ETF introduced by the Winklevoss brothers was rejected twice by the US SEC, who cited manipulation and inadequate regulation concerns.
Founder of CoinRoutes, Dave Weisberger, stated that:
“It is a great sign that multiple competing exchanges have recognized that working together, to improve the overall industry, in their mutual self-interest.”
Patrick Rooney of Trading Technologies stated that the working group gives regulators a better engagement with the cryptocurrency industry:
“I’m sure D.C. [Digital Currencies] would like to have a common voice speaking for them so it’ll certainly benefit communication to regulators as well as the trading community.”