A group of cryptocurrency exchanges has joined up with Gemini founders Cameron and Tyler Winklevoss to start a new business-centered self-regulatory firm (SRO).
1st proposed in March, the Virtual Commodity Affiliation aims to “foster fiscally sound, dependable and impressive virtual commodity marketplaces” by developing business criteria and encouraging cryptocurrency exchanges to stop industry manipulation and other fraudulent actions.
On Monday, the proposal took its following move, with Gemini launching a working group to start developing these criteria.
As spelled out by an introductory write-up on the VCA’s website, the Commodity Futures Buying and selling Commission (CFTC) has lawful jurisdiction about commodities, such as bitcoin and ether, even though it does not necessarily have jurisdiction about cash and location marketplaces derived from commodities.
On the other hand, underneath the Commodity Exchange Act (CEA), the CFTC can regulate fraud or industry manipulation.
“The order and sale of commodities in the location/cash marketplaces has been historically exempt from the CEA and CFTC jurisdiction. Even so, cash marketplaces for virtual commodities – as it is a much less effectively recognized business – can profit from an added layer of oversight. We believe that incorporating this layer can give even a lot more security for people and guarantee the integrity of these marketplaces and growing business.”
To that conclude, the VCA will appoint a board of administrators to oversee the firm, which will commit to remaining a non-financial gain, impartial group that can “assist set and undertake world wide criteria and best procedures.”
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