The Winklevoss twins’ Virtual Commodity Association has finally gotten off the ground in the form of an initial working group with the backing of four cryptocurrency exchanges operating in the U.S.

First proposed back in March, the VCA is aiming to be a self-regulatory organization designed to police digital-currency markets and custodians.

The VCA Working Group, launched today with the backing of Bitstamp Inc., bitFlyer USA Inc., Bittrex Inc. and Gemini Trust Co. LLC owned by the Winklevosses (pictured), is the first stage toward implementing the association as a whole.

The working group launches with Maria Filipakis as its interim executive director. Filipakis comes to the VCA after serving as an executive deputy superintendent at the New York Department of Financial Services, where she is claimed to have been instrumental in drafting the department’s rules and regulations for virtual currency.

At its first meeting, the working group is expected to establish a timeline for the full establishment of the VCA including guidelines for membership as well as best practices covering rules-base marketplaces, member conflict of interests and client communications. It will also work on staffing of the VCA, including the appointment of a permanent executive director.

“The blockchain industry must focus on protecting its customers and operating in a responsible manner to significantly increase adoption globally,” John Roth, chief compliance and ethics officer at Bittrex, said in a statement. “By working with the VCA, we can advance our shared goals of improving transparency, accountability and security across all virtual currency trading platforms.”

Roth added that the effort will also complement discussions with regulators and legislators about developing a long-term solution that creates a fully compliant environment for blockchain while encouraging innovation and U.S. leadership in the industry. That last is pertinent because regulators such as the U.S. Commodity Futures Trading Commission and U.S. Securities and Exchange Commission rely on self-regulatory organizations to help them monitor trading in all sorts of financial instruments.

CTFC Commissioner Brian Quintenz spoke in favor of the move, saying in a separate statement that he had twice asked earlier this year for a self-regulatory organization or SRO given the absence of federal oversight jurisdiction in the crypto market.

“Ultimately, an independent and empowered SRO-like entity could have a meaningful impact on the integrity and credibility of this young marketplace,” he said.

Image: VCA