A joint body tasked with coordinating crypto regulation globally is sorely needed and could become a reality within the next year, according to Ashley Alder, chair of the International Organization of Securities Commissions (IOSCO), an association of market regulators.
The International Organization of Securities Commissions (IOSCO) is the international body that brings together the world’s securities regulators and is recognized as the global standard setter for the securities sector. IOSCO develops, implements and promotes adherence to internationally recognized standards for securities regulation. It works intensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda.
Alder was speaking at an online conference organized by the think tank Official Monetary and Financial Institutions Forum (OMFIF). Alder, who is also the CEO of Hong Kong’s Securities and Futures Commission, said the growth of digital currency markets and their increasing connection to mainstream finance has made crypto a top focus area for regulators around the world.
“Crypto has obviously rocketed up the agenda,” Alder said, adding that crypto is now one of the three ‘C’s’ that represent the top focus area for regulators, alongside COVID and climate change.
“If you look at the risks we need to address, they are multiple, and there is a wall of worry about [crypto] in the conversations at an institutional level,” Alder said.
According to Alder, a global group designed to coordinate crypto rules is clearly needed. Alder said that global climate finance efforts are “far ahead” compared to crypto regulation, despite the importance of crypto in the global conversation.
“There isn’t anything like that for crypto at the moment,” said Alder, adding that this is likely to change by the same time next year.
This move is not an unexpected one as earlier this month FSB, IOSCO’s partner, said It could write Crypto Rulebook, mentioning that lately it has been asked to do so regularly. If this project sees a green light- crypto will be yet another step further from being what it always wanted to be. Decentralised.