Emerging Payment Technology Leaders Move to Form Self-Regulatory Organization
Leaders of the emerging payments and virtual currency industry today announced the formation of the Committee for the Establishment of the Digital Asset Transfer Authority. The Committee intends its work to promote prudent, responsible development of emerging payment networks, establish common rules to protect customers, work as a liaison among businesses, customers and public officials, and thereby speed the acceptance of new payment technologies.
The Committee plans to work toward the establishment of the Digital Asset Transfer Authority ("DATA"), envisioned as the sector's future self-regulatory organization. When established, DATA will provide its members with technical standards and best practices intended to prevent money laundering and ensure compliance with applicable laws. DATA will also develop programs to oversee member compliance with its standards and appropriate accountabilities for non-compliance and provide liaison with regulatory officials with the goal to evolving its standards appropriately in light of changes in the marketplace, technology, and regulatory requirements. DATA members will need to obtain all required license and registrations.
Another immediate priority for the Committee will be the development of anti-money laundering compliance standards for emerging payments and virtual currency firms.
"The virtual currency community must address a number of important regulatory and public policy challenges before virtual currencies can find broad acceptance," said Adam Shapiro, a director with Promontory Financial Group, LLC.
"These companies are taking an important first step toward addressing those challenges in cooperation with regulatory authorities."
"Self-regulatory organizations are excellent non-governmental solutions for industry best practices and the Bitcoin Foundation supports inclusive efforts to improve the quality of businesses engaged in exchanging Bitcoin," said Jon Matonis, Executive Director of the Bitcoin Foundation.
"At a time when virtual currencies are revolutionizing payments through technological innovations, they also are drawing intense regulatory scrutiny as regulators and lawmakers grapple with these developments," said Dax Hansen, a leading payments attorney who represents cutting-edge startups and established technology companies in these industries.
"Industry best practices and standards will contribute to productive dialogues as these innovative payment systems roll out."
"For new payment technologies such as Bitcoin, Ripple, Ven and other digital currencies to realize their full potential, making commerce cheaper and easier around the world, customers and merchants will need to have trust in the integrity of the companies in the ecosystem," said Jeremy Liew, Partner, Lightspeed Venture Partners.
"This trust comes from association, with trustworthy investors, trustworthy institutions, and confidence that these technologies and the companies that provide them share a commitment to fair, responsible and prudent business practices."
Founding members of the Committee to Establish the Digital Asset Transfer Authority include:
- Charlie Shrem, CEO, BitInstant and Vice Chairman, Bitcoin Foundation
- Tony Gallippi, CEO, BitPay
- Nejc Kodrič, CEO, Bitstamp
- Jaron Lukasiewicz, CEO, Coinsetter
- Megan Burton, CEO, CoinX, Inc.
- Edan Yago, CEO, Epiphyte
- Yoni Assia, CEO, eToro
- Stan Stalnaker, CEO, Hub Culture (Ven)
- Jeremy Liew, Partner, Lightspeed Venture Partners
- Patrick Murck
- Chris Larsen, CEO, OpenCoin, Inc. (Ripple)
- Jesse Powell, CEO, Payward, Inc. (Kraken)
- Stephen Sunderlin, President, QikCoin, Inc.
- Denis Kiselev, Founder/CEO, SnapSwap, Inc.
- Jered Kenna, CEO, Tradehill, Inc.
- Sean Safahi, CEO, Yoyocard
- Alan Safahi, CEO, ZipZap, Inc.
The Committee welcomes inquiries from other firms sharing its commitment to the responsible evolution of new payment technologies.
An Open Statement by the Committee for the Establishment of the Digital Asset Transfer Authority is available at http://www.DATAuthority.org/ or follow @DATAuthority
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