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 (IOSCO).
International Organization to examine cryptocurrency legislation
Members of the worldwide organization regulate more than 95 percent of the world’s securities markets In more than 130 nations.
The International Organization of Securities Commissions (IOSCO) had a meeting this week with cryptocurrency legislation on the agenda.
According to Reuters, IOSCO Chair Ashley Alder said global market regulators are likely to form a unified body within the next year to better coordinate cryptocurrency regulations, emphasizing the necessity for a worldwide group to regulate crypto rules.
Alder noted that similar arrangements for climate funding exist already, including one established 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, talking about the rise of digital currencies, said crypto “has gone up the agenda” and is now one of the three major topics authorities are focusing on.
Why establish a joint body?
She stated that there are numerous crypto-related risks that must be addressed and that regulators are underperforming in some critical risk areas, including cyber security, operational resilience, and a lack of transparency in the crypto ecosystem.
At the International Swaps and Derivatives Association’s annual general meeting this week, 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.
He stated, “I don’t need a crystal ball to determine if crypto will be around in 20 years.” 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.
The secretary-general urged cryptocurrency companies to collaborate with regulators, saying:
Instead of asking us to go away and not interact with the regulatory problem, use your imagination and technology to fix the regulatory problem.
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