Bitcoin industry leaders launch DATA, a self-regulatory body for digital currencies

Leaders of the emerging payments and virtual currency industry announced the formation of the Committee for the Establishment of the Digital Asset Transfer Authority. DATA will help to define the next generation of digital finance.

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 for the Establishment of the Digital Asset Transfer Authority will “work proactively with regulators and policymakers to adapt their requirements to our technologies and business models,” said the new group, in an official announcement.

“We must develop and implement common risk management and compliance standards that address the public policy concerns associated with our businesses. And our firms must build risk management and compliance programs that meet those standards,” it added.

The group published a manifesto outlining what it would do. These steps included:

. Developing best practice anti-money laundering standards for virtual currency firms.
. Serving as a source of business and technical standards for responsible conduct of financial transactions.
. Identifying emerging policy concerns early on.

“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. 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.” Jeremy Liew, Partner Lightspeed Venture Partners.

“In order to achieve broad adoption, new payment technologies ought to comply with the requirements of international and national standards of financial services and to develop new standards that are relevant to the fast changing world of global commerce. We believe that the Digital Asset Transfer Authority can advance and coordinate the efforts of market participants.” Denis Kiselev Founder and CEO, SnapSwap, Inc.

“DATA will help to define the next generation of digital finance.” Tina Frank, Chairman of the Board of Directors, Hub Culture Ltd.

The group will have its own board, including members independent of the industry, it said, and it will have its own oversight process for members.

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 Kodric, 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
* 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.
Read the full official DATA announcement