Top Crypto Exchanges Team Up in 'Virtual Commodity Association' Working Group

Top Crypto Exchanges Team Up in ‘Virtual Commodity Association’ Working Group

The new Virtual Commodity Association Working Group (VCA) will be a self-regulatory body focused on rooting out market manipulation and creating best practices for crypto commerce. Per the group’s announcement, the genesis members will include bitFlyer USA, Bitstamp, Bittrex, and Gemini Trust Company.

Also read: Andreas Antonopoulos Says Bitcoin ETFs Are a ‘Terrible Idea’. Does He Have a Point?

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With a Mind to Cleaning Up the U.S. Cryptoeconomy

In an effort spearheaded by Gemini’s Winklevoss twins, the new VCA will serve as “an industry-sponsored, self-regulatory organization (SRO) to oversee virtual commodity marketplaces,” per today’s August 20th release.

The VCA’s members are set to have their inaugural meeting in September 2018, wherein they aim to negotiate membership requirements, arbitration standards, best practices, and the staffing of the new working group’s Board of Directors and Executive Directorship.

Toward new mainstream practices.

The move comes after a lack of clarity has led to friction in the ecosystem. In June 2018, word broke that the Commodity Futures Trading Commission was investigating four top crypto exchanges over traders possibly conducting market manipulation. Before that, in May, the U.S. Department of Justice announced its own investigation of fraudulent price manipulation activities in the cryptocurrency space.

Accordingly, the VCA is in part no doubt a concerted, collaborative effort to head off these kinds of frictions in the future with a best-foot-forward approach.

“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.,” said Bitstamp CEO Nejc Kodrič of the working group’s formation. “Those that can’t or won’t comply with regulations put consumers, and their own operations, at risk.”

CFTC Commissioner Brian Quintenz issued his own bulletin on the VCA’s creation, saying that:

“[…] 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. I am pleased that progress has been made on such a concept. Ultimately, an independent and empowered SRO-like entity could have a meaningful impact on the integrity and credibility of this young marketplace. Today’s announcement is a positive step towards that realization.”

The Cryptoverse Is Growing Up

The declaration of the VCA Working Group comes on the heels of July reports that pegged Nasdaq Inc. as bringing together a handful of traditional and cryptocurrency exchanges to foster dialogue about maturing the cryptoeconomy.

Gemini was among the few exchanges confirmed to have been present at the meeting.

As Bitsonline then reported:

“Per an anonymous source privy to the matter, the meeting centered around how the cryptoeconomy could boost its perception among the general public and Wall Street and how the fledgling economy could actualize its importance within the wider international economy. As such, regulations, market infrastructure, and industry transparency were salient topics in the dialogue.”

Whether the VCA was inspired, or grew out of, the Nasdaq meeting remains unclear for now. But what is obvious is that big players both within the cryptoverse and beyond are now taking increasingly muscular efforts to bring the industry into the mainstream.

What’s your take? Do you support or have doubts about the VCA? Let us know in the comments below. 

Images via Pixabay

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