Global regulators consider launching joint body to co-ordinate cryptographic rules

The chief executive of the International Organization of Securities Commissions (IOSCO) said global market regulators are likely to launch a joint body within the next year to better coordinate cryptocurrency regulation.

A global body that coordinates cryptographic rules

The top management of the International Securities Commission (IOSCO) has been discussing cryptocurrency regulation this week. Members of the global organization regulate more than 95% of the world’s securities markets in more than 130 jurisdictions.

IOSCO Chairman Ashley Alder stressed the need for global groups to adjust crypto rules, saying that global market regulators will launch a joint body within the next year to better coordinate crypto regulations.

Alder explained, noting that similar settings are already in place for climate finance, including those set by G20 countries:

Currently, there is no such thing in cryptocurrencies. But I think it is very important because it is now considered one of the 3Cs (Covid, Climate and Cryptocurrency).

Referring to the boom in digital currencies, including Bitcoin, the IOSCO chairman said that crypto has “goed on the agenda” and has become one of three key areas authorities are focusing on.

There are several crypto-related risks that need to be addressed, she added, and regulators are lagging behind in some key risk areas, including cybersecurity, operational resilience and lack of transparency in the crypto ecosystem.

Martin Moloney, Executive Director of IOSC, said at the annual meeting of the International Swaps and Derivatives Association this week:

We stand on the cusp of something new, something that is important and requires our much effort.

He said: “You don’t need a crystal ball to be able to say, ‘Do cryptocurrencies still exist in 20 years?’ That’s not important. As you can see, we know we’re advanced enough to act as if we’re still there in 20 years. We have to take it seriously.”

The secretary-general urged the crypto industry to work with regulators to:

Don’t tell us you don’t want to get involved in regulatory issues, use your ingenuity and use your skills to solve regulatory issues.

What do you think of the global regulators that make up the global body to co-ordinate cryptographic rules? Let us know in the comments section below.

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Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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