In an effort to bring sanity and structure to the cryptocurrency sector, Gemini Trust Company LLC has created the Virtual Commodity Association (VCA). Founded five months ago and headed by Tyler and Cameron Winklevoss, the twins of Facebook and Bitcoin ETF infamy, Gemini has onboarded three other exchanges in an effort to mainstream the idea of self-regulation. The additional exchanges are Bittrex, bitFlyer USA and Bitstamp.
In a press release, the firm detailed that the VCA intends to hold its inaugural meeting in September this year. It is reported that the meeting will generally focus on membership guidelines and necessary logistics.
Leveling the playing field
As reported by RTT News, the working group’s principal task is to develop industry standards while at the same time creating an enabling environment in which transparency can thrive. The VCA will also work in tandem with the U.S. Commodity Futures Trading Commission in an effort to prevent scams and “manipulation in markets for digital assets such as Bitcoin and Ether.”
According to the Winklevoss twins the VCA will be helpful to regulators in ensuring that they do not play catch in a market whose vastness is widening by the day. This is for the reason that the VCA will help the exchanges to self-regulate. Per the release, the members of the association can share “practices and methods with an eye toward cleaning up the industry and protecting customers.”
On the other hand, given the more than a thousand digital currencies and $200 billion market cap, the Winklevoss brothers acknowledge that the industry is now ripe for regulation. The twins, according to reports, believe that a comprehensive regulatory environment is needed to protect the market from scams.
Notably, Coinbase has not acknowledged its membership in the nascent association. In view of this, some commentators have argued that there is now a need for clear incentives for those entities that may wish to join. They advocate for the formulation of proper rewards that will maintain discipline. The clarity of penalties will be crucial towards keeping bad actors outside the regulatory shell.