Cryptocurrency exchanges Gemini, Bittrex, Bitstamp and bitFlyer USA have formed an alliance called the Virtual Commodity Association (VCA) working group. The goal of the VCA working group is to be a self-regulatory organization (SRO) that will work together to regulate their cryptocurrency exchanges with a common set of rules, which will help increase global crypto adoption by increasing security, compliance, accountability, and transparency. The VCA working group will have an independent board of directors and executive director.
Bitstamp has been one of the top USD to Bitcoin exchanges since the early days. Gemini is a well-known exchange that is headquartered in New York City and geared towards institutional investors. Bittrex is a popular crypto exchange that accepts USD. bitFlyer USA is the US branch of Japan’s most popular exchange.
The common denominator between these exchanges is that they are well-known and make significant amounts of money, but they are nowhere near the top crypto exchanges in the world. Huobi, Binance, Bitfinex, and OKEx are the top crypto exchanges in the world and often have daily trading volume of USD 0.5-1 billion. Bitstamp has trading volume of less than USD 100 million per day, Bittrex is at less than USD 50 million per day, and Gemini is around USD 25 million per day.
Even though the VCA working group is being marketed as focusing on regulations, it is likely that they will be focusing on working together to achieve greater success, like an alliance or cartel. Right now the exchanges in the VCA working group are relatively small fish in an ocean filled with whales, and perhaps if they work together they could become a bigger player. A big part of that will be achieving optimal balance regarding regulations, and they can do that much better together than alone.
It appears the VCA working group is open to accepting new members beyond the initial four exchanges that comprise the group right now. Perhaps the group harbors hopes to one day become influential in the industry.
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