The Winklevoss brothers intend to engage in the regulation of cryptocurrency trading. Statement famous twin brothers was published on the website of the exchange owned by them Gemini.
Cameron (Cameron Winklevoss) and Tyler (Tyler Winklevoss) Winclose propose to create an Association of virtual goods (Virtual Commodity Assotiation) — self-regulatory organization (SRO), which will control the markets of digital currency and to monitor the cryptocurrency exchanges. According to them, a similar organization with the goal of making a profit, will contribute to the development of industry standards, promote transparency, and to work actively with regulators, including the U.S. Commission on commodity futures trading (CFTC), to prevent fraud.
“Prospects for the virtual products and their impact on the future will be enormous, but individuals and institutions must feel safe in the transaction. We believe that well thought-out structure of the SRO that provides regulation program the industry of virtual goods is the next logical step required for the maturation of this market,” wrote the brothers in a statement.
Note, us regulators, including the CFTC and the Commission on securities and exchange Commission (SEC), largely rely on self-regulatory organizations, helping them to monitor the markets all instruments ranging from swaps to shares of the largest U.S. companies. For example, the regulatory authority financial industry (FINRA), which has the status of SRO and funded by the industry, a leading regulator of Wall Street brokers.
However, currently, no financial regulator has no direct powers of control over exchanges, which trade cryptocurrency on the spot market. Instead, there are several legislative acts that serve as the legal basis, which, according to critics, creates opportunities for abuse and potential manipulation.
According to news Agency Bloomberg, CFTC Commissioner Brian Quintenz (Brian Quintenz) praised the plan and urged Winklevosses cryptocurrency exchanges to actively participate in the formation of a private regulator or SRO that will help to fill this gap.
“I congratulate Cameron and Tyler Winklevoss with their dynamic leadership and thoughtful approach that demonstrates the concept they set out self-regulatory organization (SRO) for virtual goods. I urge Gemini (as well as any other market participant, an advocacy group, the platform or the company) to be aggressive in the promotion of these qualities in the structure of any SRO,” said Brian Quintenz.
Brothers Winklevoss suggest that the Association of virtual goods will be open for trading platforms serving us investors. For membership in the Association will be charged a fee, which will form the basis for the funding of such a regulator.
It should be noted that Association members will have to adhere to certain rules pertaining to financial responsibility and measures for cyber security and conditions for the exchange of information, the violation of which entails the possibility of imposing sanctions.
We will remind, in December, the brothers Winklevoss was named first Piccolomini billionaires.