Global market regulators are likely to launch a joint body within the next year to better coordinate cryptocurrency regulation, a senior official at the International Organization of Securities Commissions (IOSCO) has said.
A global body to coordinate cryptography rules
Senior 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.
Underscoring the need for a global group to align crypto rules, IOSCO Chair Ashley Alder said global market regulators would likely launch a joint body within the next year to better coordinate regulations. on cryptocurrency, Reuters reported.
Noting that similar setups are already in place for climate finance, including one set up by G20 countries, Alder described:
There’s no such thing for crypto at the moment… 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 chairman said crypto “has risen to the agenda” and become one of three key areas authorities are focusing on.
She noted that there are multiple crypto-related risks that need to be addressed, adding that regulators are lagging behind in some key risk areas, including cybersecurity, operational resilience and lack of transparency in the ecosystem. of cryptography.
Martin Moloney, Secretary General of the IOSC, said this week at the annual general meeting of the International Swaps and Derivatives Association:
We are on the cusp of something new, something important and something that takes a lot of work out of us.
He said, “I don’t need to have a crystal ball to be able to say, ‘Will crypto still be around in 20 years? It does not matter. I know, as you can see, it has grown enough that we have to start acting like it will still be around 20 years from now. We have to take it seriously.
The Secretary General urged the crypto industry to engage with regulators, saying:
Use your ingenuity, use your technology to solve the regulatory problem instead of telling us to leave, that you don’t want to tackle the regulatory problem.
What do you think of regulators around the world forming a global body to coordinate crypto rules? Let us know in the comments section below.