Regulating a fairly nascent industry is certainly difficult. While the crypto industry has been around for over a decade, the regulatory landscape has been challenging to navigate, particularly in the United States. The absence of comprehensive regulations has been a cause for concern. To address this, global regulators have taken steps to introduce the first set of international norms for cryptocurrencies.
The International Organization of Securities Commissions [IOSCO] decided to finally explore the regulatory waters in the crypto world. The regulator has realized the woes of cryptocurrency firms yearning for a globally-coordinated approach. Therefore, the upcoming laws could aid the industry and filter out ill-doers. Elaborating on the same, Jean-Paul Servais, chairman of global IOSCO said,
“Once finalized the recommendations will deliver a first globally coordinated set of rules for crypto-assets.”
Servais revealed that the collapse of Sam Bankman-Fried’s FTX exchange was the tipping point. He also noted that along with new reforms, the influence of existing norms on the sector will be evaluated. He added,
“As I have repeatedly said, the IOSCO recommendations will clarify the extent to which existing principles and guidance could apply to cross-border virtual assets and services providers.”
Here’s who will be required to abide by IOSCO’s imminent crypto laws
It should be noted that IOSCO consists of 35 securities regulators. The members of the board include securities regulatory authorities of Australia, Bahamas, Bangladesh, Belgium, Brazil, China, DIFC, Dubai, Egypt, France, Germany, Greece, Hong Kong, India, Ireland, Italy, Japan, Kuwait, Malaysia, Mauritius, Mexico, Morocco, Ontario, Peru, Quebec, Republic of Korea, Saudi Arabia, Singapore, Spain, Sweden, Switzerland, The Netherlands, Türkiye and the United Kingdom.
Reuters affirmed that the U.S. Securities and Exchange Commission [SEC], Japan’s Financial Services Authority, and regulators in Britain, Germany, and France, have committed to applying IOSCO’s recommendations.
Earlier today, the SEC revealed that it doesn’t intend to rush the process of regulating the crypto-verse. Therefore, these regulations could certainly come as a relief to the citizens of the U.S.