Crypto Exchanges Create Working Body to Bolster Bitcoin Trading Market and Increase Credibility

Cryptocurrency exchanges are taking a page from successful stock markets, forming a working group to oversee the unregulated digital asset exchange space, according to Business Insider.

Dubbed the Virtual Commodity Association, the group collectively handles tens of billions in the daily traded volume of the cryptocurrency market.

Cryptocurrency industry observers noted the absence of Coinbase in the VCA consortium, given the San Francisco-based exchange's historic adherence to government regulations and consumer safety.

Interestingly, Coinbase has proven to have deep relations with the U.S. government-a feature not enjoyed by other U.S-based exchanges.

Most recently, U.S. regulators rejected Gemini's attempt to launch Bitcoin ETFs to the institutional cryptocurrency market.

Membership Guidelines for inclusion in the VCA.Creating a robust marketplace for promoting fairness, transparency and risk management in the cryptocurrency sector.

Bittrex's chief compliance officer, John Roth, highlighted that the VCA could help "Advance our shared goals of improving transparency, accountability and security across all virtual currency trading platforms."

Roth also added the consortium helps create a unified dialogue with regulators and another legislator while developing a long-term solution for ensuring compliance and innovation in the blockchain and cryptocurrency sector.

Several reports suggest financial institutions and big-name banks are waiting on the sidelines to enter the cryptocurrency market, primarily due to a lack of regulations and an absence of an operational framework.

"Institutions are genuinely skeptical today over the fairness and data quality in the crypto market. Tere is a lot of concern over the quality of the exchange data we aggregate as well as underlying manipulation. An industry SRO is a great start towards ameliorating those concerns."