Global market regulators are likely to launch a joint body next year to further coordinate cryptocurrency regulation, said a top executive of the International Organization of Securities Commission (IOSCO).
Global Agency for the Coordination of Crypto Regulations
Top executives at the International Organization of Securities Commissions (IOSCO) discussed cryptocurrency regulation this week. Members of the global organization manage more than 95% of the world’s securities markets in more than 130 jurisdictions.
Emphasizing the need for global groups to harmonize cryptocurrency rules, IOSCO Chairman Ashley Alder said that global market regulators will launch a joint body next year to better coordinate cryptocurrency regulations, Reuters reported.
Noting that similar preparations already exist for climate finance, including those prepared by G20 countries, Alder explains:
There is no such thing as a crypto now … But I feel it now appears that one of the three C’s (Covid, climate and crypto) is becoming very important.
Citing the boom of digital currencies, including bitcoin, the IOSCO chairman said crypto “is already up on the agenda” and is one of the three main areas the authorities focus on.
He noted that there are a number of crypto-related risks that need to be addressed, adding that regulators are lagging behind in some key risk areas, including cyber security, operational resilience, and lack of transparency in the crypto ecosystem.
Martin Moloney, secretary general at IOSC, said at the annual general meeting of the International Swaps and Derivatives Association this week:
We are on the cusp of something new, something important and something that requires a lot of work from us.
He said: “I don’t have to have a crystal ball to be able to say, ‘Is crypto still there in 20 years?’ No problem.I know, as you know, it has evolved enough that we have to act as if it will still be there in 20 years.We have to take it seriously.
The secretary general called on the crypto industry to engage with regulators, stating:
Use your ingenuity, use your technology to solve regulatory issues instead of telling us to go, if you don’t want to get involved in regulatory issues.
What do you think about regulators around the world forming a global body to coordinate crypto rules? Let us know in the comments section below.
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