Security commissions all over the world are likely to launch a joint crypto regulatory body within 2023, according to Ashley Alder, CEO of the Hong Kong Securities and Futures Commission and chairman of the International Organization of Securities Commissions (IOSCO).
Alder concretized his statement by saying that the digital assets boom is one of the main agendas alongside climate change and the pandemic that authorities cannot overlook.
The statement was made during the Official Monetary and Financial Institutions Forum, which has taken place over the last couple of days.
The chairman of IOSCO, in his speech, addressed the “wall of worry about this (crypto) in the conversations at an institutional level,” citing cybersecurity, operational sustainability and poor transparency as the main risks and topics that regulators keep lagging behind on.
In Alder's opinion, the three Cs—Climate, COVID and Crypto—are all very important matters and should be regarded as equally risky subjects.
The solution, in Alder's opinion, is somewhere in the area of creating a global joint regulator. The one regulator that could best align crypto rules all across the globe, something similar to the already established climate finance group, G20.
Regulation is tightening
In recent years, crypto has managed to avoid excessive regulatory pressure. Please download WikiBit for more blockchain news.
By giving up small parts of the pie to be eaten, crypto enthusiasts have slipped away from regulators.
During recent years, they have been creating more and more technologically complex and weighty products, while at the same time looking forward to mass adoption without having to cooperate with authorities.
However, with the arrival of institutional investors and the incredible influx of capital in the last year, the two opposing camps found themselves facing the need to come to a consensus on the regulation of digital assets.
Terra's latest story does not look good either, drawing more negative attention from authorities and giving them a chance to tighten their rhetoric even more.