It looks like a global cryptocurrency regulatory agency could see the light of day next year. This was announced by the President of the International Organization of Securities Commissions (IOSCO)), Ashley Alder.
In a statement released by Reuters on May 12, Alder noted some key points regarding the cryptocurrency regulation. He claims that the fundamental goal of the organization is to establish a uniform regulatory framework for cryptocurrencies. This follows the tremendous expansion of the industry.
Additionally, Alder mentioned three main areas where they believe significant authority change is needed. These areas cover digital assets, Covid-19, and climate change.
Following his statement, he qualifies the three Cs (COVID, climate and crypto) very important. According to Alder, this crypto is a wall of angst in institutional discourse.
In addition, during the presentation at the OMFIF, the President insisted on some key points to address the main issues. As indicated, the main concerns were related to the cybersecurity, operational resilience and lack of transparency.
Apart from the cryptocurrency industry, the climate and finance sectors also need a cryptocurrency regulatory agency, according to the official statement.
TerraUSD Collapse Draws Attention to Cryptocurrency Regulation
The call for global cryptocurrency regulation comes on the heels of the crash of stablecoin TerraUSD. Additionally, US politicians are also pushing for strict restrictions in the sector.
Due to regulatory uncertainty, the value of bitcoin has fallen by around 30% in the last seven days. At the time of writing, the all-time high for the digital asset was $28,300.
Calls for regulation of the cryptocurrency industry are growing as the industry expands rapidly. However, the lack of collaboration between regulators around the world is a major problem. Also, some jurisdictions have become crypto-friendly, while others have become crypto-unfriendly in this regard.
In this chain of events, IOSCO supports the importance of cryptocurrency regulation. This is why she joined many agencies, such as the International Monetary Fund (IMF). For countries like India, the IMF considers the regulation of cryptocurrencies to be a major concern. In addition, the organization warned El Salvador of the risks associated with the legalization of bitcoin. In response to the lack of a global cryptocurrency regulatory framework, the IMF introduced a guideline in December.
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