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US Crypto Exchanges To Discuss Self Regulation

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A number of U.S. cryptocurrency exchanges, led by Gemini Trust, have joined together to discuss setting up a self-regulatory organization in the cryptocurrency industry.

The Virtual Commodity Association or VCA, created by Gemini exchange co-founders Cameron and Tyler Winklevoss, will meet for the first time in September.

The initial participants in the VCA Working Group will include crypto exchanges Bitstamp, bitFlyer USA, Bittrex, and Gemini Trust.

In a statement, the VCA said the exchanges will work towards the goal of establishing an industry-sponsored, self-regulatory organization or SRO to oversee virtual commodity marketplaces.

Maria Filipakis, formerly an Executive Deputy Superintendent at the New York Department of Financial Services, has been appointed as VCA interim Executive Director. It was reported that she was instrumental in drafting the DFS rules and regulations for virtual currency.

The VCA will also have an independent board, and establish a framework for industry best practices.

At the initial meeting, Working Group participants would discuss guidelines for membership in the VCA, for best practices and rules-based marketplaces, and for best practices that will address member conflicts of interest, among other things. They will also discuss staffing the VCA.

Nejc Kodric, Bitstamp CEO, said, "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. Those that can't or won't comply with regulations put consumers - and their own operations - at risk."

Yusuf Hussain, Gemini Trust Head of Risk, stated that it is the first of many steps in policing the digital asset markets and answering the call of regulators.

Meanwhile, Coinbase, a major crypto exchange in the country, is absent from the union. According to market research firm Bernstein, San Francisco-based Coinbase accounts for half of all U.S. cryptocurrency trading.

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