Cryptocurrency Exchanges Join Hands to Form Self-Regulatory Organization

Bitstamp, Inc., bitFlyer USA, Inc., Bittrex, Inc., and Gemini Trust Company, LLC, have joined arms to kind the Virtual Commodity Association (VCA) Working Group. The working group will work in the direction of establishing an industry-sponsored, self-regulatory group (SRO) to oversee digital commodity marketplaces, the group said on Monday.

The VCA will develop a framework for {industry} greatest practices, promote transparency and work with regulators together with the US Commodity Futures Trading Commission (CFTC) to forestall fraud and manipulation in markets of digital currencies corresponding to bitcoin and ether.

The VCA could have an government director and impartial board however within the meantime, Maria Filipakis will act because the interim government director. Filipakis previously labored as an government deputy superintendent on the New York Department of Financial Services (DFS) and helped create the state’s BitLicense allow.

An preliminary assembly might be held in September throughout which contributors will talk about pointers for membership, greatest practices, and staffing.

Currently, no federal regulator within the US has direct authority over the cryptocurrency buying and selling sector. Instead, platform operators should adjust to an assortment of state legal guidelines.

Brian Quintenz, a CFTC commissioner, welcomed the VCA initiative, and mentioned in a statement on Monday:

“Given the absence of federal oversight jurisdiction within the crypto market, in February and once more in March of this yr I referred to as on the crypto platform group to come collectively and develop a self-regulatory organization-like entity that would develop and implement guidelines.

“I’m happy that progress has been made on such an idea. Ultimately, an impartial and empowered SRO-like entity may have a significant influence on the integrity and credibility of this younger market. Today’s announcement is a constructive step in the direction of that realization.”

John Roth, chief compliance and ethics officer at Bittrex, mentioned the institution of the VCA will hopefully enhance transparency, accountability and safety throughout all digital foreign money buying and selling platforms.

“This effort will also complement our discussions with regulators and legislators about developing a long-term solution that creates a fully-compliant environment for blockchain while encouraging innovation, economic growth, and US leadership in the industry,” Roth mentioned.

Yusuf Hussain, head of danger at Gemini Trust Company LLC, mentioned the transfer was “the first of many steps in policing the digital asset markets and answering the call of regulators.”

Meanwhile, Hailey Lennon, director of compliance at bitFlyer USA, mentioned that rules within the cryptocurrency house have been evolving to embody the brand new know-how. “Industry leaders with extensive knowledge and who are impacted by regulations should really be part of the conversation,” Lennon mentioned.  

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