Crypto Needs a Global Regulatory Body, Top Official Says

Ashley Alder, chair of the board of directors of the International Organization of Securities Commissions (IOSCO), an association of firms regulating the global securities and futures market, said there is a need for a global crypto regulatory body. 

Crypto Lacks Transparency

Speaking at the online Digital Monetary Institute (DMI) symposium held last week, Alder noted that crypto is one of three major issues that global regulators are concerned about, with the other two being COVID-19 and climate change.

The IOSCO chairman stressed that a global regulatory body is important due to the lack of transparency in the crypto market. He noted that such authority is needed to coordinate crypto regulations just the way other bodies such as the G20 coordinate the economies of various countries.

“There isn’t anything like that for crypto at the moment [. . .] but I do think now it’s seen as one of the three C’s, so it is very [. . .] important. It has gone up the agenda, so I would not expect that to be the case the same time next year,” he said.

Alder’s comment on cryptocurrency regulations come shortly after a recent drama with Terraform’s algorithmic stablecoin UST, which was responsible for a chain of events that contributed to the current downtrend in the price of crypto assets.

In a Tuesday report, Janet Yellen, the secretary of the United States Treasury, revealed that stablecoin legislation is crucial, citing UST as a risky asset.

Crypto Regulation on the Increase

Despite the decentralized nature of cryptocurrencies, government authorities have sought out ways to regulate the interaction of users with crypto assets through centralized exchanges.

In April, Singapore authorities passed a bill aimed at tightening regulations for crypto firms in the country. The new law requires exchanges offering services to foreign investors to obtain an operational license.