Amidst crypto crash, 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.
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.
The financial world is focused on crypto this week as markets crashed, exacerbated by the collapse of the stablecoin TerraUSD (UST). Early Thursday, bitcoin was trading at a 16-month low.
“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.