Global market regulators are likely to launch a joint body within the next year to better coordinate cryptocurrency regulations, said a top executive of the International Organization of Securities Commissions (IOSCO).
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.
Emphasizing the need for a global group to align crypto rules, IOSCO Chair Ashley Alder said global market regulators are likely to launch a joint body within the next year to better coordinate cryptocurrency regulations, Reuters reported.
Noting that similar setups are already in place for climate finance, including one set up by G20 countries, Alder described:
There isn’t anything like that for crypto at the moment … But I do think now it’s seen as one of the three C’s (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 on some key risk areas, including cyber security, operational resilience, and a lack of transparency in the crypto ecosystem.
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 requires a lot of work from 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, stating:
Use your ingenuity, use your technology to solve the regulatory problem instead of telling us to go away, that you don’t want to engage with the regulatory problem.
