Global crypto regulation body likely in next year, top official says

Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are positioned on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

LONDON/HONG KONG, May 12 (Reuters) – Global market regulators are likely to launch a joint body inside the next yr to higher co-ordinate cryptocurrency guidelines, a senior watchdog official has stated.

Ashley Alder, chair of the International Organization of Securities Commissions (IOSCO) stated the increase in digital currencies resembling bitcoin was one of many three foremost areas authorities had been now centered on, alongside COVID and local weather change.

“If you look at the risks we need to address, they are multiple and there is a wall of worry about this (crypto) in the conversations at an institutional level,” Alder stated throughout an internet convention organised by the OMFIF thinktank on Thursday.

He cited cyber safety, operational resilience, and a scarcity of transparency in the crypto world as the important thing dangers that regulators are lagging behind on.

Focus on crypto markets has intensified once more this week amid extra wild volatility that has long-alarmed watchdogs.

The collapse of so-called ‘stablecoin’ TerraUSD noticed the chairman of the Senate Banking Committee on Wednesday urge U.S. lawmakers to toughen up crypto laws, whereas bitcoin has additionally slumped practically 20% this week. learn extra

Alder stated a worldwide group that attempted to align crypto guidelines was clearly wanted, likening it to numerous set-ups already in place for local weather finance, together with one underneath the G20 group of main economies.

“There isn’t anything like that for crypto at the moment,” stated Alder, who can also be CEO of Hong Kong’s Securities and Futures Commission.

“But I do think now it’s seen as one of the three C’s (COVID, climate and crypto) so it’s very, very important. It has gone up the agenda, so I would not expect that to be the case the same time next year.”

Reporting by Marc Jones in London and Alun John in Hong Kong; modifying by Jason Neely

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