According to the plan of the creators of the Gemini exchange, the institution will develop standards for the industry, will help increase market transparency, and also cooperate with regulatory authorities in order to reduce the level of fraud.
“We believe that a convenient structure of a self-regulatory organization providing regulation for the new virtual goods industry is the next logical step towards creating a new market. We look forward to feedback on this proposal from market participants, regulators and legislators,” the Winklevoss brothers said.
US regulators such as the SEC and CFTC rely on the work of similar financial institutions in the standard financial market. A similar organization is successfully operating in the brokerage market, which is financed by brokerage companies from Wall Street.
In fact, at the moment, not a single federal regulator influences crypto platforms. Therefore, exchanges rely on government laws at their discretion, which in turn allows them to manipulate the market.
Brian Quintenz, Commissioner of the CFTC, was enthusiastic about the Winklevoss brothers' proposal and promised to do everything possible to promote and support the initiative. Moreover, both on our part and on the part of the regulator. He believes that a private regulatory body should be created as soon as possible.
“I am very pleased with the initiative of Tyler and Cameron Winklevoss, given their commitment and thoughtful approach to developing the concept of a self-regulatory organization. I encourage Gemini and all other industry participants to take the initiative in creating a cryptocurrency self-regulatory organization,” said Brian Quintenz.
As for the work of the structure itself, according to the Winklevoss brothers’ plan, it will be financed from membership fees. It will be open and accessible to all cryptocurrency exchanges working with investors. Members of the organization will be required to follow a set of specific rules that relate to fiscal responsibility, cybersecurity and data sharing. In case of non-compliance with the rules, participants will face sanctions.
According to https://gemini.com
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