A non-profit, independent organization dubbed the Virtual Commodity Association (VCA) is said to be laying a foundation to advocate its self-regulatory plans before Congress. The association is backed by Cameron and Tyler Winklevoss the founders of Gemini. Gemini Trust Company, LLC (Gemini) is a digital currency exchange and custodian whose primary competitors are some of the top exchanges in the cryptocurrency industry like Coinbase, Binance, Bitstamp, and Kraken.
The synergy of four renowned cryptocurrency exchanges, Gemini, bitFlyer, Bittrex, and Bitstamp has been driven towards establishing this self-regulatory organization (SRO) for the cryptocurrency industry. The team is also collaborating with commercial consultants, law firms, and compliance experts as well.
Already, six committees have been launched to undertake the writing of white papers that outline the industry’s best practices in tune with “the Bank Secrecy Act and know your customer procedures, custody and security issues, enforcement protocols, insurance standards, market integrity, and taxation,” according to a statement. Each committee will be paired with industry leaders steeped in regulatory knowledge; with this, the VCA hopes to foster a “well-informed, sensible regulation.” In addition, Navigant Consulting and Perkins Coie representatives will work as advisors alongside each committee. The association is taking these steps being expectant that a congressional hearing would affirm them as a self-regulating overseer.
VCA President, Yusuf Hussain revealed the team is already “in conversation with supportive regulatory bodies,” and has identified the industry challenges of most concern for the regulatory community. “These committees directly address the concerns of regulators that are trying to figure out the crypto space,” Yussef said. He added that the VCA is “not a replacement for but a supplement to traditional regulatory bodies.”
Also, the committees that have been assembled would focus on the different areas where there is still regulatory uncertainty, one area for each committee:
BSA/AML — how to apply Bank Secrecy Act and Know Your Customer controls, including blockchain analytics and transaction monitoring.
Custody and Security —how to implement and maintain current best practices for cryptocurrency custodianship.
Enforcement — how to execute the regulatory policies and procedures established by the VCA and respond to customer concerns and complaints.
Insurance — how to establish minimum, appropriate insurances and coverages for cryptocurrency exchanges and custodians.
Market Integrity — how to facilitate cross-market information sharing, surveillance, and auditing to detect and deter manipulative and fraudulent activity.
Tax — how to establish a tax framework and interpretation of tax code law as it relates to cryptocurrency trading
“The VCA is grateful to the individuals and companies willing to commit their time towards these committees and advance the goals of the VCA in fostering consumer protection and market integrity for the virtual currency industry,” said Hailey Lennon, Secretary of the VCA, in a statement.
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