2018-8-24 13:50 |
In the face of the second rejection of their Bitcoin ETF, the Winklevoss twins are leading efforts to set up a self-regulatory organization for the crypto space to help root out bad actors and behaviors. One of the key reasons the US Securities and Exchange Commission (SEC) gave when denying their bid for their Bitcoin ETF wasthat Bitcoin markets are not satisfactorily policed for manipulation. The organization is called the Virtual Commodity Association (VCA), and several large exchanges have indicated they will also participate.
What Is the Virtual Commodity Association?Created by Gemini cryptocurrency exchange, the association works as a self-regulatory organization that helps in rooting out malicious behavior from the crypto economy. The VCA includes Bittrex, BitFlyer USA and Bitstamp as its members. In a statement on Monday, it noted that the representatives of all the three exchanges would meet in September to discuss how to set up this self-regulatory organization.
The VCA will also help in the development of industry standards, promote transparency in the exchanges as well as assist them in working closely with the US Commodity Futures Trading Commission. Their efforts will also seek to eradicate fraud and price manipulation in the digital currency markets.
Looking Forward to a Regulated SpaceThe group has named former New York Department of Financial Services employee Maria Filipakis as its interim executive director. Filipakis played an instrumental role in creating the state’s digital currency permit, known as BitLicense.
The creation of a self-regulatory organization in the crypto sector will help it align with other industries. The SEC, CFTC and other regulatory agencies rely heavily on such organizations to monitor trading activities. As it stands, there is no federal or state agency designated to oversee cryptocurrency exchanges in the country. Moreover, there are no specific laws or regulations that control this market.
CFTC commissioner Brian Quintenz said:
“Given the absence of federal oversight jurisdiction in the crypto market, in February and again in March of this year I called on the crypto platform community to come together and develop a self-regulatory organization-like entity that could develop and enforce rules. Today’s announcement is a positive step towards that realization.”
The Winklevoss twins, apart from working on the VCA, have already sought to improve oversight on their own exchange. Earlier this year, Gemini hired NASDAQ to conduct market surveillance using its technology on their platform.
Winklevoss Brothers Lead an Effort to Rule Out Bad Actors From the Crypto Industry was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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