Crypto exchanges Gemini, Bitstamp, Bittrex, and bitFlyer USA have announced the creation of a self-regulatory organization for digital commodities, such as cryptocurrencies, Business Insider reports August 20.
The new group, dubbed “Virtual Commodity Association Working Group,” aims to help large-scale investors get more comfortable with the crypto market, work on formulating industry standards, and “be a precursor to the formation of a self-regulatory organization for digital commodities like [B]itcoin and [E]thereum” Business Insider reports.
The first meeting of the newly created association is set to take place in September this year. Business Insider quotes its source as explaining the kinds of problems the group wants to help solve:
“In equities, securities exchanges have their own organization to come up with common standards and jointly respond to declarations by regulators. The new group could serve as the equivalent for the crypto world by coming up with best practices for the industry, looking at ways to boost liquidity, and stamping out market manipulation.”
The Association has been founded by four U.S.-based cryptocurrency exchanges: bitFlyer, Gemini, which was established in 2014 by the Winklevoss brothers, Bitstamp, and a cryptocurrency exchange and wallet service Bittrex.
Meanwhile, one of the largest U.S. crypto exchanges Coinbase is not a part of the group, and has refused to comment on the initiative, Business Insider claims.
Earlier this summer, Winklevoss twins had won a patent for a system of exchange-traded products (ETPs) that could hold “digital assets” and “other products and/or services related to ETPs holding digital assets.”