Over the next year, market regulators in several countries could set up a new agency that will act as the global coordinator of cryptocurrency circulation rules. The agency announced Reuters with reference to the Chairman of the International Organization of Securities Commissions (IOSCO) Ashley Alder (Ashley Alder).
Mr. Alder said that the digital currency boom is now one of the top three issues for authorities around the world, alongside the environment and the pandemic. He sees cyber security, financial stability and a lack of transparency as key risks in the area of cryptocurrencies, which regulators cannot counteract in their current form. Special interest in cryptocurrencies has been piqued by various departments this week, causing the cryptocurrency market to experience extreme volatility – $200 billion was drained from it in just one day due to stampede.
The collapse of the so-called stablecoin TerraUSD and Bitcoin’s 20% drop led the US Senate Banking Committee chairman to urge lawmakers to tighten rules governing cryptocurrency circulation. According to Mr. Alder, a global cryptocurrency regulator as a mechanism to harmonize national norms is as necessary as existing international environmental agencies. “Right now, there is nothing quite like it in the cryptocurrency space. But I think it’s now seen as one of the three Cs (coronavirus, climate, cryptocurrencies), so it’s a very, very important question.”— concluded the President of IOSCO.