Investors across the world rushed to put their money into digital currencies such as Bitcoin, Ethereum and Ripple after their price began to surge in late 2017. However, as the crypto market bubble burst their average value has slumped by 75 percent, according to data from coinmarketcap.com. As such, investors are desperately looking for some positive news to bring the entire market back to the glory days. One such news is the recent bitcoin ETF proposal by the Winklevoss twins.
Despite high expectations, on July 26 2018, the SEC rejected a second attempt by the Winklevoss twins to list shares of the first-ever bitcoin ETF resulting in a gradual drop in bitcoin prices ever since. The US regulatory body cited concerns of manipulation and security as primary reasons why such an ETF would not be successful.
Winklevoss twins ready to tackle regulatory issues
Following the disappointing final verdict, the twins announced on August 20 that they are ready to tackle regulatory worries with 3 other top crypto exchanges Bitstamp, BitFlyer, and Bittrex. Together, the group of crypto exchanges are launching a new industry-focused self-regulatory organization (SRO) called Virtual Commodity Association (VCA).
Bittrex is an initial participant in the Virtual Commodity Association (VCA)’s Working Group. The Working Group will work towards the goal of establishing an industry-sponsored, self-regulatory organization (SRO) to oversee virtual commodity marketplaces. https://t.co/po08ZhlacZ
— Bittrex (@BittrexExchange) August 20, 2018
The VCA: first of many steps towards policing crypto markets
According to the website, the VCA aims to “[foster] consumer protection and market integrity for virtual commodity marketplaces” by developing industry standards and encouraging cryptocurrency exchanges to prevent market manipulation and other fraudulent actions. Sound familiar? Some say the VCA is essentially an effort by the group of exchanges to successfully push forward the bitcoin ETF.
In a joint August 20 statement, Yusuf Hussain, Gemini Trust Company LLC’s Head of Risk, stated, “This is the first of many steps in policing the digital asset markets and answering the call of regulators.”
John Roth, Chief Compliance and Ethics Officer at Bittrex added:
“By working with the VCA, we can advance our shared goals of improving transparency, accountability and security across all virtual currency trading platforms. This effort will also complement our discussions with regulators and legislators about developing a long-term solution that creates a fully-compliant environment for blockchain while encouraging innovation, economic growth, and U.S. leadership in the industry.”
Introduction of a self-regulating conglomerate, like the VCA, will likely lead to another round of institutional interest, as traditional firms realize how serious crypto industry players are when it comes to proper regulation and investor protection. Following VCA’s public announcement, bitcoin prices rose about 5% within a 24-hour period.
“B2B reporter – Content Manager – Contributor – Fintech – Blockchain – Cryptocurrency”
Simon Chou is a B2B reporter and content manager specializing in technology and finance. He has worked with many clients in the fintech and blockchain space. He holds investment positions in bitcoin and other large-cap cryptocurrencies, and has been reporting on cryptocurrency since 2017. Currently, Simon is the content manager for a major cryptocurrency exchange @HybridBlockHQ.