Bitcoin exchanges join forces to launch Virtual Commodity Association (VCA)
A new independent working group has been launched with a view to policing cryptocurrency and virtual commodity markets, and custodians.
Last week, a press release announced the creation of the Virtual Commodity Association (VCA), and has been backed by four cryptocurrency exchange platforms, BitStamp Inc, bitFlyer USA Inc, Bittrex Inc and Gemini Trust Company LLC. The group aims to be a self-regulatory organisation (SRO) as the industry does not yet have government or jurisdictional oversight in the USA.
According to announcement, the VCA’s initial meeting is due to be held this September, and is expected to focus on:
- Guidelines for membership in the VCA
- Guidelines for best practices and rules-based marketplaces that will promote fairness, transparency, risk management, and liquidity
- Guidelines for best practices that will address member conflicts of interest, client communications, client disclosures, and record keeping
- Staffing at the VCA, to include an Executive Director, among others and composition of the Board of Directors
Maria Filipakis is acting as the group’s interim Executive Director. Ms. Filipakis was formerly an Executive Deputy Superintendent at the New York Department of Financial Services (DFS) and is said to have been integral in drafting the DFS rules and regulations for cryptocurrency.
The creation of an industry led, regulatory focused group like the VCA is hugely important for a market which is still relatively in its infancy. It can also be seen as another step towards protecting the industry and its customers, as well as building credibility for blockchain and virtual commodities.
Click here to read the full press release from the VCA.