The rise of digital currencies like bitcoin, according to Ashley Alder, chair of the International Organization of Securities Commissions (IOSCO), is one of the three primary topics authorities are now focusing on, alongside Covid and climate change.
“If you look at the dangers we need to handle, they’re numerous, and there’s a wall of fear about this (crypto) in institutional dialogues,” Alder said during an online conference hosted by the OMFIF think tank on Thursday.
He identified cyber security, operational resilience, and a lack of transparency in the crypto sector as important issues that authorities are failing to address.
The spotlight has returned to crypto markets this week, amidst even more wild volatility that has long frightened watchdogs.
Following the collapse of so-called “stablecoin” TerraUSD, the head of the Senate Banking Committee urged US lawmakers to tighten crypto rules on Wednesday, while bitcoin has fallen over 20% this week.
Alder said a global group to try to harmonise crypto laws was certainly needed, comparing it to different climate finance setups already in place, including one under the G20 group of world leaders.
“At the present, there isn’t anything like that for crypto,” Alder, who is also the CEO of Hong Kong’s Securities and Futures Commission, said.
“But, now that it’s recognised as one of the three C’s (Covid, climate, and crypto), I believe it’s critical. It has moved up the priority list, so I don’t expect it to be the same next year.”
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