It looks like a global cryptocurrency regulatory agency may see the light of day next year. This was stated by the chief International Organization of Securities Commissions (IOSCO)), Ashley Alder.
In a statement issued by Reuters on May 12, Alder made some key points regarding Cryptocurrency regulation. He claims that the organization’s primary goal is to create a unified regulatory framework for cryptocurrencies. This follows the massive expansion of the industry.
In addition, Alder mentioned three main areas in which he believes that a major change in power is needed. These areas cover digital assets, Covid-19, and climate change.
After his statement, he qualified the three C (COVID, Climate and Cryptocurrency) very important. According to Alder, this cryptography is a wall of concern in institutional discourse.
In addition, during the presentation at OMFIF, the President insisted on some key points to address the main issues. As shown, the main concerns were related to Cyber security, operational flexibility and lack of transparency.
Aside from the cryptocurrency industry, the climate and finance sectors also need a crypto regulatory agency, according to the official statement.
TerraUSD Collapse Draws Attention to Cryptocurrency List
The call for global crypto regulation comes on the heels of the collapse of the stablecoin TerraUSD. In addition, US politicians are also pushing for strict restrictions in this sector.
Because of regulatory uncertainty, Bitcoin’s value dropped by about 30%. In the past seven days. At the time of writing, the all-time high for a digital asset is $28,300.
Calls for regulation of the cryptocurrency sector are growing as the industry expands rapidly. However, the lack of cooperation between regulators around the world is a major problem. Also, some jurisdictions have become crypto-friendly, while others have become unfriendly in this regard.
In this series of events, IOSCO supports the importance of regulating cryptocurrencies. This is the reason why it joins many agencies, such as the International Monetary Fund (IMF). For countries like India, the International Monetary Fund regards cryptocurrency regulation as a major concern. In addition, the organization warned El Salvador about the risks associated with the legalization of Bitcoin. In response to the lack of a global regulatory framework for cryptocurrencies, the International Monetary Fund presented a guideline in December.
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