Gemini-Backed Virtual Commodity Association Set To Present It’s Crypto Self-Regulatory Case Before Congress
Months after various cryptocurrency exchanges joined forces to form a self-regulatory organization, dubbed the Virtual Commodity Association (VCA), for the nascent cryptocurrency industry, they are now ready to present their plan to Congress.
The not-for-profit organization that has the backing of the Gemini duo Cameron and Tyler Winklevoss is saying to be in the final stages of its preparation to advocate for self-regulation before Congress members, CoinDesk reports.
Virtual Commodity Association (VCA) brings together four renowned exchange platforms including Gemini, bitFlyer, Bittrex, and Bitstamp. It also comprises of commercial consultants, legal-based organizations as well as compliance experts who are working together to establish a self-regulatory organization (SRO that will oversee the crypto sector.
Six Committee Formed
Currently, the organization has already formed six committees to come up with a white paper which will deliberate sector’s best practices in relation to the Bank Secrecy Act as well as Know Your Customer (KYC) procedures, custody and security aspects, enforcement protocols, insurance measures, market integrity and taxation.
The measures have been established in anticipation of a possible Congressional meeting that will confirm VCA as a self-regulating watchdog. According to VCA president, Yusuf Hussain, the consortium has kickstarted dialogues with supportive regulatory bodies and industry challenges have already been identified that might be a major concern for the regulatory community.
Hussain explained that every committee will have a specific area of focus where uncertainties have been identified as follows:
- BSA/AML — how to apply Bank Secrecy Act and Know Your Customer controls, including blockchain analytics and transaction monitoring.
- Custody and Security —how to implement and maintain current best practices for cryptocurrency custodianship.
- Enforcement — how to execute the regulatory policies and procedures established by the VCA and respond to customer concerns and complaints.
- Insurance — how to establish minimum, appropriate insurances and coverages for cryptocurrency exchanges and custodians.
- Market Integrity — how to facilitate cross-market information sharing, surveillance, and auditing to detect and deter manipulative and fraudulent activity.
Tax — how to establish a tax framework and interpretation of tax code law as it relates to cryptocurrency trading.
VCA has paired every committee with industry experts with regulatory knowledge in order to come up with ‘well informed and sensible regulations. Additionally, Navigant Consulting and Perkins Coie officials have been roped in as advisors for every committee.
Hussain explained that the committees have been formed after a careful study of the market and the concerns raised by the regulators. He said:
“These committees directly address the concerns of regulators that are trying to figure out the crypto space, it should be noted that VCA is not a replacement for but a supplement to traditional regulatory bodies.”
The aim of these developments is to enhance consumer protection and allowing cryptocurrencies to go mainstream as well as attract more and bigger institutions in the sector.
VCA will need congressional approval for it to become a recognized and registered SRO. it is on this basis that proper standards are required before approaching the Congress, Hussain explained. Currently VCA is open to all US digital assets platforms as well as custodians.
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