Jean-Paul Servais, the new Chairman of the global securities authority International Organization of Securities Commissions (IOSCO), highlighted the need for urgent crypto regulations while focusing on ‘conglomerate’ companies in the wake of FTX collapse.
On November 11, the Sam Bankman-Fried-founded cryptocurrency exchange FTX filed for bankruptcy under Chapter 11. Ever since, FTX’s remaining assets have been frozen by the Bahamas Securities Commission.
According to The Coin Republic, FTX presented in its 23 page long filing, disclosing that they have 100,000 plus creditors and assets valued anywhere between $10 billion to $15 billion. Further, they have total liabilities valuing $10 to $50 billion.
Digital currencies such as Bitcoin (BTC) have been around for over a decade, however, until now it didn’t seem like the industry was deliberately addressed by regulators. The FTX debacle might change that.
Servais said in an interview-
“The sense of urgency is not the same even two or three years ago. There is some dissenting opinion about whether crypto is a real issue internationally as some think it is still a material issue and not a risk. Is.”
“Things are changing and because of the interconnectivity between different types of businesses, I think it is important now that we are able to start a discussion and that is what we are going for.”
IOSCO is a global organization meant to regulate the world’s securities and futures markets. Over 100 countries are IOSCO members. They regulate an estimated 95% of the world’s securities markets.
According to the IOSCO’s official press release, Mr. Servias is also the Chairman of Belgium’s Financial Services and Markets Authority (FSMA), Vice Chair of the IOSCO Board and Chair of the European Regional Committee, who was appointed IOSCO Chair during the Board’s inaugural meeting at IOSCO’s 2022 Annual Meeting in Marrakesh.
As per the Press release as on July 13, CPMI and IOSCO publish final guidance on stablecoin arrangements confirming application of Principles for Financial Market Infrastructures. It states that-
“Recent developments in the crypto asset market have again brought urgency for authorities to address the potential risks posed by crypto assets, including stablecoins more broadly. The recent market disruptions, while costly for many, were not systemic events. But they underline the speed with which confidence can be eroded and how volatile crypto assets can be. Such events could become systemic in the future, especially given the strong growth in these markets and the increasing linkages between crypto assets and with traditional finance.”
Mr. Servias noted that ‘conglomerates’ such as FTX tend to grow faster, due to which they start involving in many other financial services, such as proprietary trading, brokerage services and more, under their own will.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/11/24/iosco-pull-triggers-on-rest-of-crypto-firms-after-ftx-crash/