The Virtual Commodity Association, a non-profit, independent organization backed by Gemini founders Cameron and Tyler Winklevoss, is laying the groundwork to advocate its self-regulatory plans before Congress.
A collection of four major cryptocurrency exchanges – Gemini, bitFlyer, Bittrex, and Bitstamp – in collaboration with commercial consultants, law firms, and compliance experts are working to establish a self-regulatory organization (SRO) for the cryptocurrency industry.
The organization has launched six committees to write white papers that delineate industry best practices concerning the Bank Secrecy Act and know your customer procedures, custody and security issues, enforcement protocols, insurance standards, market integrity, and taxation, according to a statement. These measures are made in anticipation of a potential congressional hearing that would affirm the VCA as a self-regulating watchdog.
Yusuf Hussain, VCA President, said the consortium is already “in conversation with supportive regulatory bodies,” and has identified the industry challenges of most concern for the regulatory community.
Each committee will focus on areas where there is still regulatory uncertainty. That being for each branch:
- BSA/AML — how to apply Bank Secrecy Act and Know Your Customer controls, including blockchain analytics and transaction monitoring.
- Custody and Security —how to implement and maintain current best practices for cryptocurrency custodianship.
- Enforcement — how to execute the regulatory policies and procedures established by the VCA and respond to customer concerns and complaints.
- Insurance — how to establish minimum, appropriate insurances and coverages for cryptocurrency exchanges and custodians.
- Market Integrity — how to facilitate cross-market information sharing, surveillance, and auditing to detect and deter manipulative and fraudulent activity.
- Tax — how to establish a tax framework and interpretation of tax code law as it relates to cryptocurrency trading.