Industry officials prepare virtual currency guidelines

  • Posted by Nicole Muller
  • July 31, 2013 12:12:10 PM BST
A selection of firms in the virtual currency sector have teamed up to create a self-regulatory organisation to protect the industry, it has been confirmed.

The growing popularity of online money has encouraged the Digital Asset Transfer Authority (DATA) and its committee to start promoting the safe use of such services for both businesses and users alike. Through forming an ongoing partnership, the companies involved in DATA hope new rules can be agreed to help develop the industry responsibly, and encourage more people to trust virtual currency.

It was just this week that the Bank of Thailand decided to ban the use of Bitcoin, claiming that the lack legal framework behind the currency made it too risky to commit to. And with the US authorities also expressing concern in the area, it appears that the move by DATA has come at the right time.

Jon Matonis, executive director, Bitcoin Foundation, says: "Self-regulatory organisations 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."

As well as Bitcoin, other businesses involved in the initiative include BitPay, Coinsetter, CoinX, eToro, Hub Culture (Ven), OpenCoin, SnapSwap, Tradehill and ZipZap.