Cryptocurrency exchanges are at the mercy of the SEC and FTC when it comes to regulatory matters. Current regulations have been muddle with speculation of the unknown as regulators are having difficulty on how to classify cryptocurrencies when it comes trading and investing. The Winklevoss Twins, Cameron and Tyler, have took the initiative to set up the industry’s first self-regulatory organization, the Virtual Commodity Association.
The VCA was established in March of this year and will have their first inaugural meeting in September to try to establish the first regulatory matters that need attending. The VCA is looking to find a wide-reaching standard to develop the best practices and promote transparency for the US crypto industry. The group will also work closely with US regulators to help shape the future of crypto’s regulations.
The VCA have announced their first members to join the Winklevoss twins which include crypto exchanges, Bittrex, bitFlyer, Bitstamp, and Gemini. They are looking to add more exchanges and custodians to the organization to get a well rounded committee of experts to add input on regulatory matters, something that traditional regulators are not familiar with.
“The blockchain industry must focus on protecting its customers and operating in a responsible manner to significantly increase adoption globally. VCA will compliment our discussions with regulators and legislators about developing a long-term solution that creates a fully-compliant environment for blockchain while encouraging innovation, economic growth, and U.S. leadership in the industry.”
John Roth, Chief Compliance and Ethics Officer at Bittrex,
The group will function as an independent non-profit entity that will not operate any trading markets or serve as a trade association, nor will provide regulatory programs for security tokens or security token platforms. Their main mission is to develop the crypto regulatory arena, help with consumer protections, and promote transparency through out the industry.