Three Cryptocurrency Exchanges Join Gemini's Self-Regulatory Organization For Crypto Industry
The Gemini Cryptocurrency exchange led by the Winklevoss twins has new three new partners joining them for their crypto-industry-focused self-regulatory organization (SRO) dubbed the Virtual Commodity Association Working Group (VCAWG). The three cryptocurrency exchanges to join this working group are bitFlyer, Bittrex and Bitstamp.
The plan of launching the self-regulatory organization (SRO) was first proposed in March this year, with an aim to "foster financially sound, responsible and innovative virtual commodity markets". The VCA will work in coordination with several cryptocurrency exchanges with an aim to prevent market manipulation and other crypto-market frauds.
The VCA will be having its own independent board, an executive director and will work towards developing a framework for the industry-wide practices. The first meeting of the Working Group is expected to be conducted next month in September where representatives will be discussing on forming an SRO. Maria Filipakis will be the interim executive director of the VCA for the time-being.
While commenting on the formation of this Working Group, Ms. Filipakis said: “I applaud the VCA and its members in their commitment to strengthen the digital asset industry's regulatory landscape, rules for the protection of customers, and bring forth industry setting best practices and market transparency.”
The formation of the SRO is expected to drive interest among institutional players while encouraging them to participate in the crypto market. Moreover, such an organization is also expected to bridge the communication gap between the crypto industry and the regulators. Additionally, it can also help to establish the uniformity in the prices of the cryptocurrency assets across all global trading platforms.
Yusuf Hussain, Gemini Trust Company LLC’s Head of Risk, stated, “This is the first of many steps in policing the digital asset markets and answering the call of regulators.”
"Regulations in the cryptocurrency space are evolving to encompass this new technology. Industry leaders with extensive knowledge and who are impacted by regulations should really be part of the conversation," said Hailey Lennon, bitFlyer USA's Director of Compliance. "bitFlyer is excited to see the start of coalitions and SROs in the US and we look forward to the formation of this working group."