Global Regulators Consider Launching a Joint Body to Coordinate Crypto Rules – According to a top official of the International Organization of Securities Commissions, a joint entity would be established within the next year to better coordinate cryptocurrency laws.
The International Organization of Securities Commissions (IOSCO) met this week to examine cryptocurrency legislation. In more than 130 jurisdictions, members of the global organization regulate more than 95 percent of the world’s securities markets.
According to Reuters, IOSCO Chair Ashley Alder said global market regulators are likely to form a unified body within the next year to help coordinate cryptocurrency regulations, emphasizing the necessity for a worldwide group to unify crypto rules.
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Alder noted that similar arrangements for climate funding exist already, including one established up by the G20 countries:
“There is currently nothing comparable for crypto. But, now that it’s recognized as one of the three C’s (Covid, climate, and crypto), I believe it’s critical.”
The IOSCO chair, citing the rise of digital currencies such as bitcoin, said crypto “has gone up the agenda” and is now one of the three important topics authorities are focusing on.
She stated that there are numerous crypto-related risks that must be addressed, and that regulators are underperforming in some critical risk areas, including as cyber security, operational resilience, as well as a lack of transparency in the crypto ecosystem.
At the International Swaps and Derivatives Association’s annual general meeting, Martin Moloney, the IOSC’s secretary-general, said:
“We’re on the verge of something big, something essential, and it’ll need a lot of effort from us.”
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“I don’t need a crystal ball to predict whether crypto will still be around in 20 years,” he said. It makes no difference. As you can see, it has progressed to the point where we need to start acting as if it will still be around in 20 years. That is something we must take seriously.”
Global Regulators Consider Launching a Joint Body to Coordinate Crypto Rules – The secretary-general urged the cryptocurrency industry to work with regulators, saying:
“Instead of asking us to go away and not engage with the regulatory problem, use your ingenuity and technology to fix the regulatory problem.”