International regulators are likely to launch a joint body within the next year to better coordinate rules for cryptocurrencies, a senior supervisory official said.
As reported by Reuters, Ashley Alder, chairman at the International Organization of Securities Commissions (IOSCO), said the explosive rise of digital currencies such as Bitcoin is one of three key areas authorities are now focusing on, alongside Covid and climate change.
“If you look at the risks we have to deal with, they are multiple and there is concern about cryptocurrencies in conversations at the institutional level,” Alder said during an online conference hosted by thinktank OMFIF on Thursday.
He cited cybersecurity, operational resilience and lack of transparency in the cryptocurrency world as key risks where regulators are falling short.
The focus on cryptocurrency markets has intensified again this week amid wild volatility that has long worried regulators.
The collapse of the so-called “stablecoin” TerraUSD led the chairman of the Senate Banking Committee on Wednesday to urge US lawmakers to tighten crypto regulations, while Bitcoin has also retreated nearly 20% this week.
Alder said an international group is clearly needed to try to adjust crypto rules. “There is no such thing for cryptocurrencies right now,” said Alder, who is also CEO of the Securities and Exchange Commission and Hong Kong.
“However, I think it’s now seen as one of the ‘three Cs’ (Covid, climate and cryptocurrencies), so it’s very, very important. It’s moved up the agenda, so I wouldn’t expect it to stay that way this time next year.”
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