Ashley Alder, CEO of the Hong Kong Securities and Futures Commission and chairman of the International Organization of Securities Commissions (IOSCO) said that a global crypto regulatory organisation would be established by 2023.
Alder explained this at the Official Monetary and Financial Institutions Forum, adding that the digital asset boom, along with climate change and the pandemic, is a major issue that authorities must address.
Ashley Alder addresses the risk
The IOSCO chairman identified cybersecurity, operational sustainability, and insufficient transparency as the primary dangers and issues on which regulators continue to lag.
According to Alder, Climate, COVID, and crypto are all critical issues that should be treated as equally serious. He also believes the solution lies in the creation of a worldwide common regulator. The creation of a body that could best coordinate crypto rules all around the world may be something identical to the previously formed G20 climate finance organisation.
Regulation is tightening
Crypto has escaped regulatory scrutiny in recent years. Crypto supporters have been developing complicated and heavy technological items in recent years while predicting broad acceptance without needing to work with authorities. There is another group of institutional investors which wants some kind of regulation from authorities.
However, with the entry of institutional investors and infusion of institutional capital in the last year, the two opposed camps have been forced to work together on digital asset regulation.
Terra’s most recent report is also not looking well, bringing even more unfavourable attention from authorities and allowing them to tighten their rules even further.