Winklevoss Twins Heading New Self-Regulatory Organization

Regulation 1 min, 37 sec READ

by MIchael Collins

Gemini and the Winklevoss twins are joining a trio of other crypto exchanges in forming a new self-regulating organization

Digital asset platform Gemini, founded by the infamous twin duo of Cameron and Tyler Winklevoss, is joining a trio of other cryptocurrency exchanges in the formation of a new self-regulatory organization (SRO). The Virtual Commodity Association Working Group (VCA) consists of Gemini, Bittrex, bitFlyer USA, and Bitstamp with a unified mission to oversee virtual commodity marketplaces.

SROs present a wide range of possibilities within these emerging marketplaces. The VCA presents more of an opportunity for general structure than executive control over individual assets. A governing Board of Directors will eventually be established with capitalization from members. Once the internal framework is established, the VCA will pursue a defined set of goals.

The VCA

• will be a non-profit independent self-regulatory organization that does not operate any markets,
• will not be a trade association,
• will not provide regulatory programs for security tokens or security token platforms, and
• will help set and adopt global standards and best practices for SROs.

The Winklevoss twins continue to be an involved name in regards to various cryptocurrency exchanges and virtual marketplaces. Bats BZX Exchange submitted a proposal to list and trade shares backed by the Winklevoss Bitcoin Trust. Following the SEC's rejection of the proposal, and extensive delays in other reviews, the duo now find themselves involved in self-regulation as opposed to government oversight.

South Korea has been operating under a similar system to what is being described by the VCA. The Korean Blockchain Industry Association undertook a more proactive stance following a more aggressive approach from the country's existing regulators. While these practices have helped further the industry, the digital asset market is evolving so quickly, that many counter-measures cannot keep pace. Government agencies have suggested that self-regulation offers the best solution in the short-term, but more permanent action will be needed in the future.