A few cryptocurrency exchanges, including one of the Winklevoss brothers known as Gemini, are now teaming up in order to form a new working group.

As market observers say, the hope is that it could bring to function new industry standards for crypto and make large investors more comfortable with the nascent market.

These days, several crypto exchanges are teaming up to form a task force which could bring the crypto markets to the next level.

The creation of Virtual Commodity Association Working Group

On Monday, Gemini, which is the exchange of the Winklevoss brothers, as well as three other crypto exchanges, announced the creation of Virtual Commodity Association Working Group, which could actually be a precursor to the formation of the self-regulatory organization for digital commodities such as Bitcoin and Ethereum.

As market observers stated, the hope is that it could potentially bring to function new industry standards for crypto and make large investors more comfortable with the nascent market.

In equities, the securities exchanges already have their own organization to come up with common standards, and jointly respond to declarations by the regulators. According to one person that is familiar with the group, the new group could also serve as the equivalent for the crypto world by coming up with best practices for the industry, looking for some ways of boosting liquidity, as well as stamping out market manipulation.

The creation of such group will help regulators engage with the crypto world

The founder of CoinRoutes, named Dave Weisberger, stated that it is an excellent sign that multiple competing exchanges recognized that working together to improve the overall industry is in their mutual self-interest.

Patrick Rooney from Trading Technologies said that the formation of such group is actually going to help regulators engage with the cryptocurrency world. He said that he is sure DC is going to like to have a common voice speaking for them, so it is undoubtedly going to benefit communication to regulators and the trading community.

Some of the exchanges that join Gemini in the group are Bitstamp, Bittrex, and bitFlyer USA.

In September, the group will hold its first meeting.

Still, these are early days for the group, which notably excludes Coinbase, which is the largest crypto exchange in the US. One representative of Coinbase declined to comment on the group.

The first meeting of the group is going to be held in September this year

One of the problems that the group could solve is the opaqueness of the crypto markets. Today, digital assets simultaneously trade at various prices, and there is no typical host to adult all market data. In equities, the stock exchanges are developing the so-called Consolidated Audit Trail to permit regulators, as well as market participants to better track activities in US equities. The working group could also develop a similar project, according to a person familiar with the group.

Weisberger added that institutions are genuinely skeptical today over the fairness, as well as data quality in the crypto market. At CoinRoutes, although they help their clients consolidate the data, there is also a lot of concern about the quality of the exchange data they aggregate and underlying manipulation too. An industry SRO is actually a great start towards ameliorating those concerns, stated Weisberger.


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