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According to Ashley Alder, president of the International Securities Commission Organization (IOSCO), an association of market managers: A joint body tasked with coordinating cryptocurrency regulation globally is sorely needed.
Alder was speaking at an online conference hosted by the Official Forum of Financial and Monetary Institutions (OMFIF). Alder, who is also ceo of the Hong Kong Securities and Futures Commission, said the growth of digital currency markets and their growing connection to mainstream finance have made cryptocurrencies a leading focus area for regulators around the world.
"Crypto has clearly skyrocketed the agenda," Alder said, arguing that cryptocurrencies are now one of three 'C' that represent the top focus area for regulators, alongside COVID and climate change.
In another speech to the OMFIF research group, Alder noted that the motivation to set up a cryptocurrency "custody" organization stemmed from concerns about cybersecurity, operational resilience, and a lack of transparency in the past.
The president's bewilderment comes after the "painful" incident that the Terras have caused in recent days as well as the news that U.S. lawmakers have tightened strict regulations on cryptocurrencies.
The financial world is focusing on cryptocurrencies this week as the market crashed, exacerbated by the collapse of the terraUSD stablecoin (UST). Early on May 12, bitcoin (BTC) was trading at a 16-month low.
"If you look at the risks that we need to address it will see huge many problems and anxieties about cryptocurrencies in conversations at the institutional level," Alder said.
According to Alder, global climate finance efforts are "far beyond" crypto regulation, despite the importance of cryptocurrencies in the global conversation.
"There's not anything like that for cryptocurrencies at the moment," Alder said, adding that this is likely to change at the same time next year.
