The resounding bankruptcy of the exchange platform for encrypted assets The new head of IOSCO, the international coordination body for financial authorities, said that FTX makes regulating this sector more urgent and this type of conglomerate will be a priority in 2023.
Regulation of crypto platforms is approaching
For Jean-Paul Servais, regulating cryptocurrency platforms could be based on key principles that apply in other areas at risk of conflicts of interest, such as financial rating agencies or market index specialists, an approach that would avoid having to develop from scratch. If the crypto-asset space does not have its own regulations yet, the fall of FTX, which left behind nearly a million creditors and billions of dollars in losses, would make it possible for the field to move forward, Jean-Paul Servais stated. .
The sense of urgency was not what it was two or three years ago. There are some mixed opinions as to whether this is a real topic at the international level because some believe it is not yet an important topic or risk,” he said. It is to explain. “Things are changing and with the interdependence of the different types of activities, I think it’s important now that we’re able to open up the discussion, and that’s where we’re going.”
IOSCO, which coordinates regulations for G20 countries and others, has already laid out principles for regulating stablecoins, which are a specific class of crypto assets, but the focus is now on the platforms on which those assets are traded.
Already the first approach
Jean-Paul Servais explained that the cryptocurrency sector has spawned many conglomerates such as FTX, which perform various roles ranging from brokerage and custody services to proprietary trading and token issuance, at the risk of finding themselves in a situation of conflict of interest. “For investor protection reasons, there is a need to bring greater clarity to these crypto markets through targeted oversight of the application of the IOSCO Principles to crypto assets.” He said. Add : “We intend to publish an advisory report on these topics in the first half of 2023.”
The new European Regulation for Crypto Asset Markets, or MiCA, is a ‘An interesting starting point’ To set up an international framework as it focuses on supervising the operators of these markets, the IOSCO president, who also heads the FSMA, the Belgian Financial Services and Markets Authority, estimates. “We know there is room to develop new rules in overseeing this type of cryptocurrency blockchain. There is a clear need.”pointed out.