The famous twin brothers Cameron and Tyler Winklevoss published in the blog exchange Gemini the proposal to establish a self-regulatory organization for the growing cryptocurrency industry.
According to Winklevoss, the creation of the organization which would carry out control over the activities of exchanges and other cryptoplasm is a necessary step for the further development of the us market digital currency whose participants must be protected.
“We are convinced that a judicious self-regulatory organization that implements a program of regulation the industry of virtual goods — the next logical step for further development of this market”, — reads the statement of the brothers on the Gemini website.
Markets where the appeal of “virtual goods” twins considered unique because:
- different variants of commercial use of such assets are still in the stage of formation;
- in these markets there is a strong speculative interest;
- in kriptonyte involved a large number of individuals.
- the underlying virtual asset technologies minimize transaction costs, making them considerably lower than in other spot markets.
Thus, Winklevoss propose to create so-called “Association of virtual goods” (Virtual Commodity Association, VCA), which would be a non-profit organization and conform to “international standards and best practices”.
In their opinion, the VCA would help:
- recovery and increase the reliability and innovativeness of the markets virtual currency through the introduction of industry standards, and organization control systems that improve the transparency and efficiency of pricing in the market;
- to deter manipulative and fraudulent actions, in particular through partnerships with financial regulators, including the Commission on urgent exchange trade (CFTC), etc.
Also on the website Gemini it is noted that the SRO will be able to join all the platform for trading cryptocurrencies serving us traders. To exist, the organization will be at the expense of contributions of its participants. The latter will have to comply with different requirements for Finance, cyber-security and rules of dissemination of information. For violators of the rules will be a system of sanctions.
According to Bloomberg, the CFTC and the Commission on securities and exchange Commission (SEC) to rely heavily on the effective operation of self-regulatory organizations (SROs). Thus, currently there is still no regulator, which would be at the Federal level, to control spot stock exchange transactions with cryptocurrencies.
To fill this gap, the CFTC Commissioner Brian Quintenz turned to cryptocurrency exchange Commission a proposal to create a non-governmental organization, or SRO, supporting, thus, the initiative of brothers Winklevoss.
We will remind, in February, the CFTC urged cryptologist to unite efforts to establish standards of self-regulation, and actively introduce industry best practices to regulate the industry.