The Virtual Commodity Association will have regulations about information sharing, cybersecurity and fiscal responsibility. Members will have to comply to these regulations to remain members. The two brothers see it as the next step in the maturation of crypto markets
Winklevoss twins have proposed to create Virtual Commodity Association, a self-regulating organization that would police digital currencies by creating industry standards and promoting transparency. The organization will also work with the government and regulators to promote transparency in cryptocurrencies.
The plan is to ensure that cryptocurrency projects create an environment where everyone feels “safe and secure when transacting”. It probably would be a great response to the regulation problems affecting cryptocurrencies today. Not only most of regulators are moving fast, there is the danger that their lack of understanding these projects could spoil.
However, the issue of working on standards might help accelerate innovations in future. And bring together various people working on various cryptocurrency projects for the benefit of everyone.
The organization will be funded through membership fees. However, it will have rules regarding cybersecurity, information sharing and fiscal responsibility. The members will need to comply to remain part of the organization. It will be open to trading venues that cater for U.S. investors.
The two released a statement saying that a virtual commodity regulation program for the virtual commodity industry is the next logical step in maturation of the markets.
Winklevoss twins run Gemini exchange where users trade Bitcoin and Ether.
CFTC Republican Commissioner Brian Quintenz called on crypto exchanges to form a private regulator or SRO and on Tuesday praised the two for their plan.