Global market regulators are expected to create a joint body next year to better coordinate cryptocurrency regulations, a top executive at the International Organization of Securities Commissions (IOSCO) said.
A global body to coordinate crypto rules
Top executives from the International Organization of Securities Commissions (IOSCO) discussed cryptocurrency regulation this week. Members of the global organization regulate more than 95% of the world’s securities markets in more than 130 jurisdictions.
Stressing the need for a global group to align crypto rules, IOSCO Chair Ashley Alder said global market regulators are expected to set up a joint body next year to better coordinate cryptocurrency regulations, Reuters reported.
Noting that similar structures already exist for climate finance, including one put in place by the G20 countries, Alder described:
There’s no such thing for crypto right now… But I think now it’s considered one of the three Cs (Covid, climate and crypto), so it’s very, very important.
Citing the boom in digital currencies, including bitcoin, the IOSCO chair said crypto is “on the agenda” and has become one of the three key areas the authorities are focusing on.
Noting that there are several crypto-related risks that need to be addressed, she added that regulators are lagging behind in some key risk areas, including cybersecurity, operational resilience, and a lack of transparency in the crypto ecosystem.
Speaking at the International Swaps and Derivatives Association Annual General Meeting this week, Martin Moloney, Secretary General of the IOSC said:
We are on the cusp of something new, something important and something that requires a lot of work.
He said, “I don’t need to have a crystal ball to be able to say, ‘Will crypto still exist in 20 years?’ It does not matter. I know, as you can see, it’s evolved to the point where we have to start pretending it’s going to be 20 years from now. We have to take it that seriously.”
The Secretary-General urged the crypto industry to cooperate with regulators, stating:
Use your ingenuity, use your technology to solve the regulation problem instead of telling us to go, that you don’t want to deal with the regulation problem.
What do you think of regulators around the world forming a global body to coordinate crypto rules? Let us know in the comment section below.
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