International crypto regulatory body may be established in 2023

According to the IOSCO’s Chair, a special group will be able to agree on rules for the control of the digital assets sector

12.05.2022 - 13:20

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What’s new? Over the next year, global market regulators will create a joint body to better coordinate cryptocurrency rules. This was reported by Reuters, citing Ashley Alder, Chair of the International Organization of Securities Commissions (IOSCO). According to him, the digital currency boom is one of the three main areas that authorities are now focusing on, along with COVID-19 and climate change.

Information on the Reuters website

What else did Alder say? He called cybersecurity and a lack of transparency in the cryptocurrency sector key risks that regulators are lagging behind on. According to Alder, there is a need for an international group that will be able to agree on rules to regulate digital assets.

What events happened before? In early May, Wyoming Senator Cynthia Lummis revealed details of a bill on the regulation of cryptocurrencies, which she plans to introduce by the end of 2022. According to her, the document will adapt the US legal framework so that cryptocurrencies and traditional assets fall under similar regulatory categories. However, there will be nothing about NFTs in the bill, as it is “so hard to figure out how to categorize them.”

The South Korean authorities intend to prepare a regulatory framework to institutionalize cryptocurrencies by 2024. A draft law would be presented as early as this year.

The European Commission discusses the possibility of limiting the issuance of stablecoins when the threshold of 1 million transactions per day is reached. And the Argentine authorities banned local banks from providing services with digital assets. This came shortly after the country’s two largest banks allowed customers to trade cryptocurrency.

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