Four cryptocurrency exchanges hope to create a self-regulatory framework for virtual commodity exchanges.
The Virtual Commodity Association (VCA) today announced that it has formed a working group that will lay the groundwork for a virtual currency exchange self-regulatory organization (SRO). The first meeting of the group is scheduled for September.
The formation of the VCA was first suggested back in March by Cameron and Tyler Winklevoss. In the post that introduced the idea, Cameron Winklevoss wrote:
“Individuals and institutions need to feel safe and secure when transacting. We believe a thoughtful SRO framework that provides a virtual commodity regulatory program for the virtual commodity industry is the next logical step in the maturation of this market.”
In a follow-up post today, Winklevoss announced that his own company, Gemini exchange, has joined the VCA and will be participating in the working group. The other organizations are bitFlyer, Bitstamp, and Bittrex.
According to the announcement, the first meeting will address:
- “Guidelines for membership in the VCA.”
- “Guidelines for best practices and rules-based marketplaces that will promote fairness, transparency, risk management, and liquidity.”
- “Guidelines for best practices that will address Member conflicts of interest, client communications, client disclosures, and record keeping.”
- “Staffing the VCA, to include an Executive Director, among others, and composition of the Board of Directors.”
Winklevoss has said the VCA should be modelled on the National Futures Association, the SRO that works with the Commodities Futures Trading Commission to regulate the US derivatives industry.
