Crypto's Drastic Crash To Attract Stricter Global Regulation, Here's Why
The International Organization of Securities Commissions (IOSCO) on Thursday reportedly said financial market regulators around the world are likely to launch a global crypto regulation body next year. The joint crypto regulatory body will be tasked to coordinate crypto rules.
The crypto market crash and collapse of Terra’s stablecoin UST have urged global market regulators to better regulate the crypto market.
Global Crypto Regulation Body for Regulating Crypto Assets
IOSCO Chair Ashley Alder said the increased crypto adoption around the globe, management of crypto risks at the institutional level, and rising cybercrime with cryptocurrencies have led to concerns among market regulators globally, Reuters reported on Thursday.
“IOSCO has set up a crypto taskforce and says ‘now is the time for a new phase in our engagement with crypto’, but warns of bubbles.”
–Martin Moloney, General Secretary of the IOSCO told Reuters
The global crypto regulatory body will focus on regulating crypto assets such as bitcoin, managing crypto investment protection for retail and institutional investors, and overseeing security and transparency in the market.
This week’s crypto market crash and loss of USD-peg of UST stablecoin have raised fresh concerns among regulators. Regulators around the globe are seeking to propose a regulatory framework for stablecoins. The U.S. Treasury Secretary Janet Yellen has called for stablecoin regulation after UST and LUNA destabilized the market.
Alder, who is also CEO of Hong Kong’s Securities and Futures Commission, thinks a global group to align crypto rules is certainly needed. However, there isn’t anything like that for crypto at the moment.
Correlation Between Nasdaq and Crypto Market
The correlation between the Nasdaq 100 and the crypto market has worried traders as both markets continue to move downwards. Bitcoin price has fallen nearly 30% in the last 7 days, which led to investors losing billions. Meanwhile, the Nasdaq-100 index has dropped below 12,000 from a high of 16,500 in December end.
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