There seems to be a possibility of a worldwide crypto regulatory agency next year. This was announced by the chairperson of the International Organization of Securities Commissions (IOSCO), Ashley Alder.
In a statement published by Reuters on the 12th of May, Alder noted some key points regarding the crypto regulations. He says that the fundamental goal of the organization is to establish a uniform crypto regulation framework. This comes as a result of the industry’s tremendous expansion.
In addition, Alder mentioned three main domains where they think that a significant authority change is required. These areas cover digital assets, Covid-19, and climate change.
Following his statement, he calls the three C’s (COVID, climate, and crypto) quite significant. According to Alder, this crypto is a wall of anxiety in institutional discourse.
Moreover, during the presentation to OMFIF, the chairman emphasized some key points to address the main issues. As reported, the major concerns were about cyber security, operational resiliency, and a lack of transparency.
Besides the crypto industry, climate and finance sectors also need a crypto regulating agency, according to the official statement.
The Crash of TerraUSD Rises Attention to Crypto Regulation
The calling for a global crypto regulation comes just after the crash of the TerraUSD stablecoin. In addition, US politicians are also pressing for strict restrictions in the sector.
Due to the regulatory uncertainty, Bitcoin’s value has been down by about 30% in the last seven days. At the time of this writing, the digital asset’s all-time high was $28,300.
Moving forward, as the industry is facing a rapid expansion, calls for regulation of the crypto sector are increasing as well. Nonetheless, a major issue is the lack of collaboration between regulators around the world. Additionally, some jurisdictions have emerged as crypto-friendly, while others have emerged as crypto-hostile in this regard.
In this chain of events, the IOSCO supports the importance of regulating crypto. Therefore, it has joined many agencies, like the International Monetary Fund (IMF). For nations like India, the IMF believes that crypto regulation is a major concern. Additionally, the organization has gone on record warning El Salvador of the risks of legalizing Bitcoin. In response to the lack of a global crypto regulating framework, the IMF presented a guideline in December.