The Winklevoss twins have set their next project in the cryptocurrency world. This time their glances directed towards the regulation.
Brothers, the founders of the trading platform, Gemini, has presented his proposal to create a Virtual trademark of the Association — self-regulatory organizations, designed to monitor and protect the cryptocurrency market. To prevent fraud, a nonprofit group will seek to develop industry standards to increase transparency and cooperation with regulators, including the Commission on trade in commodity futures of the USA.
Blog their exchange, Gemini has tried to convey the idea of creating such an Association:
“We believe that a sound basis of organization for regulation of cryptocurrency exchanges, which will present a program of regulation of the industry virtual trade items is the next logical step on the way to maturing of the market. We look forward to opportunities for collaboration with leaders and members of the industry, regulators and legislators on this proposal”
Regulators, including the Commission on securities and stock exchanges of the United States, rely heavily on self-regulatory organization or SRO, to help them control trade — unclear from swaps to shares of the largest U.S. companies.
Currently, no Federal regulator has no direct powers in relation to the cryptocurrency exchanges. Instead, there is a summary of state laws, serving as a legal basis, which, according to critics, abused.
In a statement on Tuesday, the CFTC Commissioner Brian Quintenz praised the plan for the Winklevoss brothers:
“Ultimately, the SRO for virtual items trade, which will not depend on its members, will represent the most diversified views and will have a strong ability to identify, define and punish offenders, to protect the integrity of this market. I call the Gemini (or any other market participant, social movement, platform or company) to promote these qualities in the structure of the SRO the most aggressive way.”
The virtual goods of the Association will be financed by membership dues and will be open to trading sites that serve us investors. Members of the Association will be required to adhere to certain rules relating to fiscal responsibility, cyber security and information sharing, and face sanctions if rules are not adhered to.