{"id":77333,"date":"2018-08-21T14:00:35","date_gmt":"2018-08-21T21:00:35","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=77333"},"modified":"2019-11-05T11:45:16","modified_gmt":"2019-11-05T11:45:16","slug":"crypto-exchanges-create-working-body-to-bolster-bitcoin-trading-market-and-increase-credibility","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/crypto-exchanges-create-working-body-to-bolster-bitcoin-trading-market-and-increase-credibility\/","title":{"rendered":"Crypto Exchanges Create Working Body to Bolster Bitcoin Trading Market and Increase Credibility"},"content":{"rendered":"

Cryptocurrency exchanges are taking a page from successful stock markets, forming a working group to oversee the unregulated digital asset exchange space, according to Business Insider.<\/p>\n

Create the New Financial Market<\/h2>\n

While it isn't confirmed, the logical sequel to such a working group is the formation of a self-regulatory body or a \u201cvirtual commodity marketplace.\u201d<\/p>\n

According to an official press release<\/a>, the effort is spearheaded by the Winklevoss twins, owners of Gemini Exchange, and includes Japan's Bitflyer, the U.S.'s Bittrex and Luxembourg's Bitstamp.<\/p>\n

Dubbed the Virtual Commodity Association (VCA), the group collectively handles tens of billions in the daily traded volume of the cryptocurrency market.<\/p>\n

Bitstamp CEO Nejc Kodri\u010d<\/a> said industry players value self-regulation, which was earlier centralized in Europe but has since shifted to a regulatory perspective.<\/p>\n

Kodri\u010d added:<\/p>\n

\u201cThose that can\u2019t or won\u2019t comply with regulations put consumers\u2013and their own operations\u2013at risk.\u201d<\/p><\/blockquote>\n

Weak Government Links for Now<\/h2>\n

Meanwhile, cryptocurrency industry observers noted the absence of Coinbase<\/a> in the VCA consortium, given the San Francisco-based exchange\u2019s historic adherence to government regulations and consumer safety.<\/p>\n

Interestingly, Coinbase has proven to have deep relations with the U.S. government\u2013a feature not enjoyed by other U.S-based exchanges. Most recently, U.S. regulators rejected Gemini\u2019s attempt to launch Bitcoin ETFs to the institutional cryptocurrency market.<\/p>\n

However, the VCA has a solid government connection in the form of its Executive Director Maria Filipakis, who previously served as the executive deputy superintendent at the New York Department of Financial Services (DFS) and formed the initial regulatory drafts and regulations for virtual currencies.<\/p>\n

VCA Sets Tasks<\/h2>\n

As stated in the press release, the VCA aims to achieve the following tasks:<\/p>\n