Cameron and Tyler Winklevoss on Reddit: Regulation is “Healthy” and “Sounds Worse than It Really is”

Early last week, twins Cameron and Tyler Winklevoss began an aggressive advertising campaign that seeks to promote their philosophy of an ideal crypto-verse with more regulations and standards.

One of the ads created by Gemini, the exchange founded by the Winklevoss twins

One of the ads created by Gemini. credit: Gemini Trust Co.

Naturally, this decision sparked some controversy in the community, promoting an intense debate about the need for controls to protect users vs. each user’s need to control their funds without handing it over to third parties.

Confident in having solid arguments to defend their position, and seeking to promote more significant interaction with the community, the twins founders of the Crypto-Exchange Gemini made a Reddit AMA hoping to discuss “what (they) think the crypto revolution needs to succeed.”

We are Cameron and Tyler Winklevoss, co-founders of Gemini — a cryptocurrency exchange and custodian — identical twins, Olympians, and angel investors. A lot has changed since our last AMA in 2015 and we look forward to discussing what we think the crypto revolution needs to succeed. AMA, or AUA! from IAmA

The most popular question was precisely aimed at clarifying Gemini’s position and the reasons for the recent campaign. Horatio-mogul was quite clear in reflecting the feeling of a good part of the community in his question:

“Some voices in crypto took umbrage with your recent advertising campaign in NY. The slogan read “Gemini: The REGULATED Cryptocurrency Exchange.” Could you explain the reasoning behind it? Does Gemini stand alone in this respect?”

Cameron Winklevoss replied, explaining that despite the vision of many anarchists, regulations facilitate the healthy development of successful economies:

They also commented that their goal is to achieve the approval of a Crypto ETF, for which Cameron explained that they hope to satisfy the requirements established by the SEC following a plan with the following stages:

• “Marketplace Conduct Rules – we implemented this to foster a rules-based marketplace.
• Marketplace Surveillance – we have have (SIC) partnered with Nasdaq to implement Nasdaq’s SMARTS Market Surveillance technology to monitor the Gemini marketplace.
• Market Surveillance Team – we have built an in-house team to monitor out marketplace for manipulative and deceptive practices.
• Virtual Commodities Association – we are helping stand up an industry-sponsored self-regulatory organization for virtual commodity exchanges.”

This response rang some bells in users who questioned the need for controls and censorship. One of them, Rapscallion30 mentioned the following:

“Marketplace Surveillance” sounds Orwellian…isn’t this contributing to the Surveillance State, where every purchase you make is known to the “authorities”? This is what crypto was intended to prevent, no?

To this argument Cameron simply replied that it was nothing new and Gemini seeks to apply the rules of traditional markets to the world of crypto:

Finally, for the most curious ones, they answered the most intriguing question of all: How many Bitcoins do the Winklevoss twins have?