Market Overview

The Virtual Commodity Association Working Group Has Formed and Is Planning Inaugural Meeting

Share:

The Virtual Commodity Association (VCA) will hold the inaugural meeting
of its Working Group in September, 2018

The initial participants in the VCA Working Group will include:
Bitstamp, Inc., bitFlyer USA, Inc., Bittrex, Inc., and Gemini Trust
Company, LLC. The Working Group will work towards the goal of
establishing an industry-sponsored, self-regulatory organization (SRO)
to oversee virtual commodity marketplaces. The VCA will have an
executive director, independent board, and establish a framework for
industry best practices. The VCA interim Executive Director will be
Maria Filipakis. Ms. Filipakis was formerly an Executive Deputy
Superintendent at the New York Department of Financial Services (DFS)
and was instrumental in drafting the DFS rules and regulations for
virtual currency.

At the initial meeting, Working Group participants expect to discuss:

  1. Guidelines for membership in the VCA.
  2. Guidelines for best practices and rules-based marketplaces that will
    promote fairness, transparency, risk management, and liquidity.
  3. Guidelines for best practices that will address Member conflicts of
    interest, client communications, client disclosures, and record
    keeping.
  4. Staffing the VCA, to include an Executive Director, among others, and
    composition of the Board of Directors.

Ms. Filipakis stated, "I applaud the VCA and its members in their
commitment to strengthen the digital asset industry's regulatory
landscape, rules for the protection of customers, and bring forth
industry setting best practices and market transparency."

"We're proud to be a part of the Virtual Commodity Association as a way
to add another element of protection for consumers," said Nejc Kodrič,
Bitstamp CEO. "We believe in the value of self-regulation, which we
pursued in Europe almost from our inception, and look forward to
following a similar path in the U.S. Those that can't or won't comply
with regulations put consumers – and their own operations – at risk."

Yusuf Hussain, Gemini Trust Company LLC's Head of Risk, stated, "This is
the first of many steps in policing the digital asset markets and
answering the call of regulators."

"Regulations in the cryptocurrency space are evolving to encompass this
new technology. Industry leaders with extensive knowledge and who are
impacted by regulations should really be part of the conversation," said
Hailey Lennon, bitFlyer USA's Director of Compliance. "bitFlyer is
excited to see the start of coalitions and SROs in the US and we look
forward to the formation of this working group."

"The blockchain industry must focus on protecting its customers and
operating in a responsible manner to significantly increase adoption
globally," said John Roth, Chief Compliance and Ethics Officer at
Bittrex. "By working with the VCA, we can advance our shared goals of
improving transparency, accountability and security across all virtual
currency trading platforms. This effort will also complement our
discussions with regulators and legislators about developing a long-term
solution that creates a fully-compliant environment for blockchain while
encouraging innovation, economic growth, and U.S. leadership in the
industry."

The Working Group looks forward to providing an update on its progress
following its inaugural meeting and welcomes indications of interest
from other organizations that would seek to participate.

View Comments and Join the Discussion!