A global regulatory framework for cryptocurrencies will be introduced next year

It looks like a global cryptocurrency regulatory agency could see the light of day next year. This is what the chairman of the International Organization of Securities Commissions (IOSCO)), Ashley Alder.

In a statement released by Reuters on May 12, Alder noted some key points regarding the regulation of cryptocurrencies† He claims that the fundamental goal of the organization is to establish a unified regulatory framework for cryptocurrencies. This follows the enormous expansion of the industry.

In addition, Alder identified three key areas where they believe a major change of authority is needed. These areas include digital assets, Covid-19 and climate change.

After his statement, he qualifies the three Cs (COVID, climate and crypto) very important. According to Alder, this crypto is a wall of fear in the institutional discourse.

In addition, during the presentation at the OMFIF, the president insisted on some key points to address the key issues. As indicated, the main concerns related to the cybersecurity, operational resilience and lack of transparency

Aside from the cryptocurrency industry, the climate and financial sectors also need a cryptocurrency regulatory body, according to the official statement.

TerraUSD Collapse Draws Attention to Cryptocurrency Regulation

Calls for global cryptocurrency regulation come on the heels of the stablecoin TerraUSD crash. In addition, US politicians are also pushing for strict restrictions on the sector.

Due to regulatory uncertainty, the value of bitcoin has fallen by about 30% in the past seven days. At the time of writing, the digital asset’s all-time high was $28,300.

Calls for regulation of the cryptocurrency sector are mounting as the industry grows rapidly. However, the lack of cooperation between regulators around the world is a major problem. Also, some jurisdictions have become crypto-friendly while others have become crypto-unfriendly in this regard.

In this series of events, IOSCO supports the importance of cryptocurrency regulation. That is why she joined many bodies, such as the International Monetary Fund (IMF). For countries like India, the IMF sees the regulation of cryptocurrencies as a major concern. In addition, the organization warned El Salvador about the risks associated with the legalization of bitcoin. In response to the lack of a global cryptocurrency regulatory framework, the IMF introduced a directive in December.

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This article is presented to you in French in consultation with our partner crypto-academy.org
If you speak English you will find the original article in English on Crypto Academy

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