Global market regulators may launch a joint body to better coordinate cryptocurrency regulations next year, a senior oversight official has said.
Ashley Elder, president of the International Organization of Securities Commissions (IOSCO), said the boom in digital currencies such as bitcoin was one of the three main areas that authorities are now focusing on, along with COVID and climate change.
“If you look at the risks that we need to address, they are many and there is concern about this (crypto) in conversations at the institutional level,” Elder said during an online conference organized by the OMFIF thinktank on Thursday. It’s a wall.”
He cited cyber security, operational flexibility and lack of transparency in the crypto world as major risks that regulators are lagging behind.
The focus on the crypto markets has again intensified this week amid more wild volatility that has long been a watchdog.
The collapse of so-called ‘stablecoin’ TeraUSD prompted the chairman of the Senate Banking Committee on Wednesday to urge US lawmakers to toughen crypto regulations, while bitcoin has also fallen by nearly 20% this week.
Elder said a global group trying to align crypto regulations was clearly needed, comparing it to the various already existing set-ups for climate finance, including one under the G20 group of major economies. is included.
“There is nothing like it for crypto at the moment,” said Elder, who is also the CEO of Hong Kong’s Securities and Futures Commission.
“But I think now it is seen as one of the three C’s (Covid, climate and crypto), so it is very important. So be it. .”
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