Global Securities Regulator Creates Working Group to Oversee Crypto Industry

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The international financial organization, which unites national securities market regulators, IOSCO, has presented a roadmap for regulating digital currencies.

The department is concerned about the lack of globalcryptocurrency regulation rules. The IOSCO Board of Directors' Fintech Working Group (FTF), according to published plans, will address issues of cryptography, digital assets (CDAs) and decentralized finance (DeFi). The working group's report is due by the end of 2023.

IOSCO Chief Executive Officer Ashley Alder believes that the organization's new strategy will provide an opportunity to effectively counter the threats that cryptocurrencies pose to investors.

“IOSCO’s ambitious roadmap will helpregulators to address the significant risks associated with the rapidly evolving, complex and opaque cryptoasset ecosystem – while preserving the social benefits of innovation,” Adler said.

The working group cooperates with the Council onFinancial Stability Board (FSB) in identifying possible risks to financial stability, given the cross-border nature of cryptocurrencies. FTF Chairman Tuang Lee Lim said the cross-border nature of crypto assets and markets requires a robust set of policy recommendations to support consistent and coordinated regulatory action.

Let us recall that in March, IOSCO proposed to regulate crypto investors on social networks and gaming platforms.