Crypto under potential global regulation next year
Securities commissions around the world are expected to launch a common crypto regulator by 2023, according to Ashley Alder, CEO of the Hong Kong Securities and Futures Commission and Chairman of the International Organization of Securities Commissions (IOSCO).
Alder concretized his statement by saying that the digital assets boom is one of the main agendas alongside climate change and the pandemic that authorities cannot overlook.
The statement was made during the Official Forum of Monetary and Financial Institutions, which was held in recent days.
The chairman of IOSCO, in his speech, addressed the “wall of worry about this (crypto) in the conversations at an institutional level,” citing cybersecurity, operational sustainability and poor transparency as the main risks and topics that regulators keep lagging behind on.
In Alder’s view, the three Cs – Climate, COVID and Crypto – are all very important topics and should be considered equally risky topics.
The solution, in Alder’s opinion, is somewhere in the area of creating a global joint regulator. The one regulator that could best align crypto rules all across the globe, something similar to the already established climate finance group, G20.
The regulations are getting tougher
In recent years, crypto has managed to avoid excessive regulatory pressure.
By giving up small parts of the pie to be eaten, crypto enthusiasts have slipped away from regulators.
In recent years, they have created increasingly complex and technologically heavy products, while hoping for mass adoption without having to cooperate with the authorities.
However, with the arrival of institutional investors and the incredible influx of capital in the last year, the two opposing camps found themselves facing the need to come to a consensus on the regulation of digital assets.
Terra’s latest story doesn’t look good either, drawing more negative attention from the authorities and giving them a chance to tighten their rhetoric even further.
