A joint body to coordinate crypto regulation globally is urgently needed and could become a reality within the next year, according to Ashley Alder, chairman 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 CEO of the Securities and Futures Commission in Hong Kong, said the growth of digital currency markets and their increasing connection to mainstream financial markets have made cryptocurrencies a major focus for regulators around the world.
"Cryptocurrencies are clearly at the top of the agenda," Alder said, adding that cryptocurrencies are now among the three 'Cs' that are the most important issues for regulators, along with COVID and climate change.
The financial world is focused on cryptocurrencies this week as markets have crashed, exacerbated by the collapse of stablecoin TerraUSD (UST). Bitcoin was trading at a 16-month low early Thursday.
"If you look at the risks we have to deal with, they are many, and there is a wall of concern about [crypto] in the conversations at the institutional level," Alder said.
Alder said a global group to coordinate crypto rules is clearly needed. Alder said global efforts on climate finance are "way ahead" compared to crypto regulation, despite crypto's prominence in global discussions.
"Right now, there's nothing like that for cryptocurrencies," Alder said, adding that this should change at the same time next year.