Virtual Commodity Association Sees 4 Major Crypto Exchanges Team Up to Address Regulatory Issues
Gemini, Bitstamp, BitFlyer USA and Bittrex Form Virtual Commodity Association (VCA)
Bloomberg’s recent report revealed the specs of a group dubbed, “Virtual Commodity Association (VCA),” which has been established in an attempt to address the lack of standards and regulations needed to rid the crypto sphere of existing fraudulent and money laundering schemes.
The group created by the Co-Founders of Gemini Trust, also includes renowned names such as Bitstamp, BitFlyer USA and Bittrex. What makes VCA interesting is its ability to bring together crypto service providers and financial regulators under one house. In particular, the two distinct group of individuals will be working together to eliminate manipulation within the crypto market and to enhance transparency among those providing crypto services.
The first conference will explore several guidelines related to those involved in the VCA, risk management and regulation-based practices, record-keeping and client-based services, and forming a well-rounded body of individuals to run the VCA.
As for the interim Executive Director of the VCA, it has been revealed that former employee of the New York Department of Financial Services, Maria Filipakis, will be taking charge. Some of the big players among the U.S regulations sector include the CFTC, and Securities and Exchange Commission (SEC), who will be contributing towards establishing, what the parties involved call a “self-regulatory organization” or SRO.
The CEO of Bitstamp, Nejc Kodric has since expressed excitement in being part of the VCA. Kodric also emphasized on how the group’s intentions reflect that of Bitstamp’s, sharing that
“we believe in the value of self-regulation, which we pursued in Europe almost from our inception, and look forward to following a similar path in the U.S.”
The Director of Compliance of BitFlyer USA, Hailey Lennon believes that regulations will serve as a foundation for the crypto space and said:
“industry leaders with extensive knowledge and who are impacted by regulations should really be part of the conversation. BitFlyer is excited to see the start of coalitions and […] looks forward to the formation of this working group.”
The Winklevoss brothers responsible for the formation of the VCA have also voiced the reason for such a group as being nothing more than a necessity. In particular, the brothers trust that “adding a layer of oversight on virtual commodity cash markets, in the form of self-regulation, is important for consumer protection and to ensure the integrity of these markets,” as well as expressing joy in being part of a big group of innovators and leaders.
What are your thoughts on the VCA? Do you think the members involved will succeed and help develop the crypto sphere?