In today’s edition of Bitcoin in Brief we cover a couple of stories that show how the cryptocurrency industry is trying to police itself. One group of companies has begun working on the formation of a self-regulatory organization and another has created a 100 BTC whistleblower reward pool.
A number of companies have jointly formed a Working Group to try and establish an industry-sponsored, self-regulatory organization (SRO) for cryptocurrency marketplaces operating in the USA. Initial participants in the Virtual Commodity Association (VCA) Working Group will include: Bitstamp, Bitflyer USA, Bittrex, and Gemini Trust. The VCA will have an executive director, independent board, and be tasked with establishing a framework for industry best practices. The VCA interim Executive Director will be Maria Filipakis, former Executive Deputy Superintendent at the New York Department of Financial Services (DFS) which created the state’s Bitlicense.
“We’re proud to be a part of the Virtual Commodity Association as a way to add another element of protection for consumers,” stated Nejc Kodrič, Bitstamp CEO. “We believe in the value of self-regulation, which we pursued in Europe almost from our inception, and look forward to following a similar path in the U.S. Those that can’t or won’t comply with regulations put consumers – and their own operations – at risk.”