Statement of the Committee for the Establishment of the 

Digital Asset Transfer Authority

July 30, 2013

At the forefront of emerging payments, virtual currency, and other financial technology innovations, our companies are pioneering new services with potential to reduce the friction and cost of payments substantially and make low cost payment services available to hundreds of millions of individuals and businesses around the world. To reach this potential, to inspire confidence in the services we offer, and to ensure fair and responsible treatment of consumers and merchants, we believe our industry must evolve in compliance with law and regulation. We must work proactively with regulators and policymakers to adapt their requirements to our technologies and business models. 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.

With these objectives in mind, the Committee for the Establishment of the Digital Asset Transfer Authority will:

1. Develop best practice anti-money laundering and sanctions compliance standards for emerging payments and virtual currency firms;

2. Build public and regulatory confidence by serving as a source of business and technical standards for the prudent and responsible conduct of payment transactions;

3. Engage with member firms, merchants and customers, regulators, law enforcement and legislators to identify and address emergent public policy concerns and risks affecting our industry; and

4. Work to establish the Digital Asset Transfer Authority (“DATA”), ideally as a formal self-regulatory organization, to develop, publish and ensure member compliance with standards. We envision that DATA, when fully established, will:

a. Have a decision-making board, a majority of whose members will be independent of the industry, advised but not bound by advisory committees of technical experts and members;

b. Develop and administer appropriate oversight processes and accountabilities for members who do not meet DATA’s business and technical standards; and

c. Approve new or modified member standards as the marketplace, technology, and regulatory expectations evolve.

We expect that DATA will require its members to obtain all required licenses and registrations, and that its oversight will supplement, not replace, the oversight of statutory regulators.

We invite industry participants who share our objectives to join this effort. By engaging together in this process, we can unlock the tremendous social and economic value of emerging payment technologies, virtual currency and other financial technology innovations. If you are an executive in the emerging payments industry, please contact us.

For more information, please contact Constance Choi, General Counsel, Payward, Inc. at constance@payward.com or visit DATAuthority.org.

Sincerely,

The Committee for the Establishment of the Digital Asset Transfer Authority

Members:

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.