The Virtual Commodity Association has created six regulatory committees to act as a self-regulating oversight to protect U.S. crypto investors.
The VCA is an industry-sponsored, self-regulatory organization (SRO) for the U.S. virtual currency industry, specifically virtual commodity exchanges and custodians. They have announced six committees designed to provide standards and regulate the crypto industry. This effort is dedicated to handle the Bank Secrecy Act and Anti-Money Laundering, custody and security, enforcement, insurance, market integrity, and tax.
The VCA intends to have a committee dedicated to market integrity, that will address many concerns seen in the cryptomarket, while beginning to create a regulatory framework for virtual commodity marketplaces. As an SRO or Self Regulatory Organization, the VCA acts as a non-governmental organization which has the power to create and enforce stand-alone industry and professional regulations and standards. In the finance industry, their role also includes protecting investors by establishing rules, regulations, and setting standards and procedures which promote ethics, equality, and professionalism.
The VCA hopes to emulate the self-regulating organizations that oversee the likes of the New York Stock Exchange and the UK finance industry. But like all things with crypto, that’s easier said than done. The VCA founded by many popular crypto exchanges holds swap in over 250 exchanges currently doing business, and there are more on the way. The cryptocurrency market has seen people make very appealing promises and completely vanish or turn out to be a scheme of some sort. This seems to be backed by many reputable exchanges and hopefully grows an identity beyond them to become some sort of righteous arm in the desolate space of cryptocurrency without being manipulated to suit the exchanges.
Self-regulating organizations also haven’t had the most stellar reputation over the years. In 2012, the Financial Services Authority, the UK’s independent watchdog for the finance industry, was abolished after it turned a blind eye to British banks making increasingly risky trades that led to the collapse of three major financial institutions in the 2008 recession. While it is definitely a hard task set forward by the VCA, it is a much needed organization with cryptocurrency seeing many get rich schemes, and ponzi scams.