Regulation in the crypto markets, it is one of the most discussed topics today. According to many, the fact that crypto is outside government and banking control, is one of the best features of cryptocurrency. Of course, regulation could potentially change this fact, leaving several investors afraid.
This fear is not without reason. Governments are increasingly discussing regulation of crypto, for example, the EU is in the process of banning decentralized wallets, such as MetaMask. But this is not it, there are also reasons to think global crypto-regulation is on its way.
Crypto regulated around the world
Ashley Alder, the president of the International Organization of Securities Commissions (IOSCO), hints at global regulation, which will apply to all crypto markets. He indicates that, in his opinion, the crypto market should be covered by IOSCO, now that it is growing rapidly.
“It’s very important,” Alder points out. “If you look at the risks, they are large and there is great concern at the institutional level.”
IOSCO is an organization that regulates global markets. Members of IOSCO are the ‘local’ regulators, in the case of the Netherlands, for example, the AFM (Netherlands Authority for the Financial Markets) is a member of IOSCO. More than 95% of financial markets are regulated by IOSCO. This does not yet include the cryptocurrency markets. If it were up to Ashley Alder, the chairman, regulation will be the case in the future.
One of the problems of the crypto markets, according to Alder, is the lack of transparency and cyber security in several protocols. In addition, Ashley Alder believes that there must be a worldwide guideline when it comes to regulation, since all countries decide for themselves what they do about regulation. There is no unity, where some countries prohibit and others accept it as a means of payment.
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