Bringing order to the world of Cryptocurrency
It's not lying that Cryptocurrency has been in a downturn the last little while, but the uncertainty around the market might soon change. Up until now, the Cryptocurrency market has been a bit chaotic with the number of hackers, manipulation, and fraud going on, but that might be about to change.
The Virtual Commodity Association, a recent group, governed by Cameron and Tyler Winklevoss, says they’re planning to “promote fairness, transparency, risk management, and liquidity.” Although the idea is still new, exchanges have signed up with them. Gemini (the exchange led by Cameron Winklevoss), Bittrex, Bitstamp and Bitflyer USA have all signed up to be inaugural members. The goal is to establish a self-regulatory body for cryptocurrency; this means they would be able to have a degree of regulation over the industry and to be able to enforce proper practices.
An inaugural meeting isn’t set to take place until September, and until then their plans won’t be made public, but I believe this to be a good step for the world of cryptocurrency. One of the most significant fears people have with investing in cryptocurrency is security. With a group aiming to police the cryptocurrency world, people can feel confident in their investments.
A statement from Brian Quintenz, of the U.S. Commodity Futures Trading Commission, said “Given the absence of federal oversight jurisdiction in the crypto market, in February and again in March of this year I called on the crypto platform community to come together and develop a self-regulatory organization-like entity that could develop and enforce rules.[1] I am pleased that progress has been made on such a concept. Ultimately, an independent and empowered SRO-like entity could have a meaningful impact on the integrity and credibility of this young marketplace. Today’s announcement is a positive step towards that realization.”
I will be watching the VCA closely as they start planning on how to bring more regulation into the world of Cryptocurrency. With a little control will come market stability, which will draw investors back into the world of Cryptocurrency. Bringing some growth back into the world of cryptocurrency is something we’re all wanting.
(Written by: James Hepburn