Winklevoss twins propose cryptocurrency self-regulatory body
The founders of the Gemini exchange suggest the market be monitored properly.
Cameron and Tyler Winklevoss have submitted a proposal for the cryptocurrency market to be monitored by an industry-sponsored self-regulatory body.
The twin brothers, who founded the digital currency exchange Gemini, outlined the idea in a blog post on their company website.
They suggested that a Virtual Commodity Association be created to police digital currency markets and custodians.
In the blog, they pointed out that individuals and institutions need to feel safe and secure when transacting, and said they believed a self-regulatory organization is the next logical step in the maturation of this market.
The aim of the non-profit regulatory body would be to work with regulators such as the US Commodity Futures Trading Commission (CFTC) or the US Securities and Exchange Commission (SEC), promote financially sound and innovative virtual commodity markets, and deliver transparency.
The proposed Virtual Commodity Association would be funded by membership fees and open to trading venues that cater to US investors.
Members would be required to adhere to certain rules related to fiscal responsibility, cybersecurity and information sharing, and would face sanctions if they didn’t comply.
No federal regulator currently has direct authority over the group of exchanges that trade cryptocurrencies in the spot market.
CFTC Republican Commissioner Brian Quintenz praised the Winklevoss plan and said he encouraged Gemini to be aggressive in promoting these qualities within any SRO construct.
The twins are best known for suing Facebook founder Mark Zuckerberg in 2004, claiming he stole their ConnectU idea to create the popular social networking site.
They founded the Gemini exchange for trading bitcoin and Ether in 2015 and have offices in the US and UK.
Their proposal came as the head of the International Monetary Fund called for a crackdown on cryptocurrencies.
In a blog post, IMF head Christine Lagarde called for the crackdown, claiming that cryptocurrencies are dangerous, a risk to global financial stability, and facilitate terrorism and money laundering.