Global market regulators are planning to launch a single joint body next year to better regulate global cryptocurrency rules.
As Reuters reported, Ashley Alder, president of the International Organization of Securities and Exchange Commissions (IOSCO), said the digital currency boom is one of the authorities’ three main areas of focus, alongside Covid-19 and climate change.
“If you look at the risks we need to address, they are multiple and there is a concern about it (crypto) in institutional-level conversations,” Alder said during an online conference hosted by thinktank OMFIF on Thursday.
Global crypto asset regulatory body
Among other things, Alder mentioned cybersecurity and the lack of transparency in the cryptocurrency world as the main risks that regulators need to be aware of.
The recent crash in the crypto-assets market, with the collapse of the Earth ecosystem (LUNA), has further stirred up authorities and regulators in several countries around the world this week with regard to the possible risks of digital assets and the absence of comprehensive regulation. .
The chairman of the Senate Banking Committee, for example, has called on US lawmakers to tighten regulations on cryptocurrencies.
According to Alder, a global group to align cryptocurrency rules is clearly needed.
As an example, he cited the various configurations already in place for climate change finance, including a subgroup of the G-20:
“There is nothing like that for cryptocurrencies right now,” said Alder, who is also CEO of the Hong Kong Securities and Futures Commission.
“But I think now [o mercado de criptomoedas] is seen as one of the three C’s (COVID, weather and crypto). So it’s very, very important. They shot up in the schedule so I wouldn’t expect it to be the same next year.”
Cryptocurrency regulation: good or bad?
For Tally Greenberg, head of business development at Allnodes, regulation can be favorable to investors:
“Regulations will come and will have to come at some point. And that would further stabilize the market,” Greenberg told NextAdvisor in April 2022. “It protects investors. So it’s a good thing. It’s not a bad thing,” he added.
Who is also looking to impose strict rules for the crypto market is the European Commission, of the EU. Commission is considering introducing severe restrictions on the large-scale use of stablecoins.
Sources say the commission wants to demand that the issuance of stablecoins be stopped when limits are reached.
Under the plans, regulators could order issuers of stablecoins greater than $211 million in market cap and with more than 1 million daily transactions to halt issuance until those numbers fall back below thresholds.