Bitcoin Exchanges Form Group to Self-Regulate in US Market
Today VCA, or Virtual Commodity Association, has accepted new BTC exchanges into its group, including bitFlyer, Gemini, Bitstamp, and Bittrex. In March, Gemini released a proposal for an SRO that is sponsored by the industry itself regarding US cryptocurrency businesses. Gemini’s President, Cameron Winklevoss, stated that creating a structure for self-regulation and oversight in crypto-based markets is necessary for buyer security and maintaining the overall integrity of such markets. In addition, he noted becoming a member of the VCA allows for a sense of collaboration and connection between industry figures, business-peers and appointed overseers.
The SRO initiative was previously successful when protecting and regulating other industry markets. The American derivatives industry, for example, utilizes an SRO called the National Futures Association to help provide the necessary oversight needed to maintain security and success. The VCA plans to replicate that model to achieve the same success within the digital currency markets.
Although the possibilities offered by digital currency are endless, it is necessary for both users and businesses to enjoy a sense of security and safety when interacting within the marketplace. As a solution, creating a customized SRO structure targeted towards offering crypto regulations will help mature the market and facilitate growth. In this light, the VCA plans to establish an SRO to overview the US digital currency community, appoint a board of independent members, and create a guideline for best-practice.
Key Members of the VCA
The NY Department of Financial Services’ former Exec Deputy Superintendent, Maria Filipakis, has been appointed as the VCA’s interim Director. She played a major role in creating the DFS guidelines and official regulations for the trading of cryptocurrency.
According to a statement released by Bitstamp’s CEO, Nejc Kodric, the company is thrilled to be a member of the VCA as it furthers the notion of protecting their consumers. Kodic also explained that he values self-regulation and is happy to be furthering this pursuit in the US as they have done within the European market.
VCA Member’s Meeting Itinerary
Newly congregated members of the VCA are scheduled to discuss a variety of topics during their first meeting to be held this September. Topics will detail subjects including recommended practices set out for each member in addition to reviewing rules designed to facilitate fairness, enhance liquidity, and promote transparency. In addition, the meeting aims to cover issues regarding potential conflicts-of-interest among members, official documentation storage, and appoint members to the group, including Directors and a Board of officials.