Crypto-regulation continues to remain an extremely touchy subject, especially since it is near impossible for existing financial rules to be applied to cryptocurrency firms and service providers. To counter this problem, various Bitcoin exchanges are now joining forces to introduce self-regulatory measures. The new venture goes by the name of the ‘Virtual Commodity Association’ (VCA) and its inaugural meeting is scheduled for September.
More Self-Regulation for Crypto Firms
Cryptocurrency exchanges across South Korea set an interesting precedent earlier this year by coming together to introduce self-regulatory measures that all participating entities are required to adhere to. A similar effort was undertaken in Japan, a country where Bitcoin has officially achieved the status of legal tender. These efforts collectively addressed one of the biggest concerns surrounding Bitcoin and altcoins in general: “a lack of active regulation”.
It now seems cryptocurrency exchanges across the United States too are actively enforcing their own regulatory standards. Considering how the US government has time and again failed to come up with an official set of guidelines, introducing self-regulation makes a lot of sense.
The Virtual Commodity Association is comprised of Bitstamp, bitFlyer USA, Bittrex, and Gemini and their joint goal is to establish an industry-sponsored organization to oversee virtual commodity marketplaces.
In regards to this latest development, VCA Interim Executive Director Maria Filipakis mentioned:
“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.”
One could argue that it is high-time cryptocurrency exchanges took proactive measures to ensure the legitimacy of the crypto sector moving forward. If successful, these efforts may also pave the way for future Bitcoin ETF approvals by the SEC.