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A number of cryptocurrency exchanges have tied up with cryptocurrency investors Cameron and Tyler Winklevoss to launch a cryptocurrency self-regulatory organisation says a report from Coindesk.
The Virtual Commodity Association (VCA) wants to "foster financially sound, responsible and innovative virtual commodity market as per industry standards" to encourage cryptocurrency exchanges for prevention of market manipulation and fraudulent activities.
According to the VCA's website, the Commodity Futures Trading Commission (CFTC), which has legal jurisdiction over commodities, such as bitcoin and ether, does not necessarily have jurisdiction over the cash and spot markets which is derived from commodities.
Under the Commodity Exchange Act (CEA), the CFTC is empowered to regulate fraud or market manipulation.
Hence, to execute and maintain industry standards the VCA will make use of "a Board structure (including a required number of independent directors). The primary function of the Board will be to facilitate the goals and mission of the VCA, potentially including the issuance of reports regarding the standards set forth by the VCA".
The post also enlists a number of Sound Practices that aim to maintain an integrity in the functioning of the cryptocurrency exchanges and markets.
As the cryptocurrency market struggle to find acceptance among the mainstream finance, such measures may help in the cause but it is still dependent on recognition from authorities like the SEC and central banks around the world.
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