According to a top watchdog official, global market regulators are likely to establish a single agency within the next year to better coordinate cryptocurrency laws.
The spotlight has returned to crypto markets this week, amidst even more wild volatility that has long frightened watchdogs.
The rise of digital currencies like bitcoin, according to Ashley Alder, Chair of the International Organization of Securities Commissions (IOSCO), is one of the three primary topics authorities are now focusing on, alongside COVID and climate change.
“If you look at the dangers we need to handle, they’re numerous, and there’s a wall of fear about this (crypto) in institutional dialogues,” Alder said during an online conference hosted by the OMFIF think tank on Thursday.
He identified cyber security, operational resilience, and a lack of transparency in the crypto sector as important issues that authorities are failing to address.
Alder said a global group to try to harmonize crypto laws was certainly needed, comparing it to different climate finance setups already in place, including one under the G20 group of world leaders.
“At the present, there isn’t anything like that for crypto,” Alder, who is also the CEO of Hong Kong’s Securities and Futures Commission, said.
“But, now that it’s recognized as one of the three C’s (COVID, climate, and crypto), I believe it’s critical. It has moved up the priority list, so I don’t expect it to be the same next year.”
The collapse of so-called’stablecoin’ TerraUSD prompted the head of the Senate Banking Committee to demand more crypto regulations on Wednesday, while bitcoin has dropped over 20% this week.
Read more on Tech Gist Africa:
The market value of crypto assets dropped by $800 billion in just one month
Cryptocurrency luna falls to $0 as UST falls farther from its dollar peg
Nigeria’s market regulator has published crypto-asset regulations