After the collapse of the FTX exchange, it has been a more crucial task to supervise the cryptocurrency industry, as the catastrophe has affected it. In an interview, the new face of the International markets authority Iosco (International Organization of Securities Commissions) said that the attention for 2023 will be on similar ‘conglomerate’ networks and platforms.
According to the expert Jean-Paul Servais, instead of taking a fresh start or pursuing a new beginning, the governing cryptocurrency platforms can look for ideas from other organizations or industries that are already experienced and experts to deal with potential conflicts. For example, many platforms, including the organizations like credit rating firms and those responsible for showcasing marketing standards and other related platforms, can significantly help in delivering worthy ideas that may be of great use.
Although cryptocurrency is not been freshly introduced in the market, people are familiar with cryptocurrencies like bitcoins, as it has been presented previously. Therefore, it has been known for a while, but the officials are still unwilling to take risks at this stage by introducing new standards or regulations.
According to Servais, the change will occur due to the collapse of FTX, which left an estimated count of millions of creditors with damages worth billions of dollars, which is undoubtedly a considerable amount.
Stating the views of Jean-Paul Servais here, “The sense of urgency was not the same even two or three years ago. There are some dissenting opinions about whether crypto is a real issue at the international level because some people think that it’s still not a material issue and risk.”
“Things are changing, and due to the interconnectivity between different types of businesses, I think it’s now important that we can start a discussion, and that’s where we are going.”
Iosco has already highlighted the importance of the stablecoin standards and regulations, which maps and defines the criteria for G20 and other nations. The updates in the case show that now all the attention and focus is on the platforms and mediums that aid the trading of these stablecoins. Now, these trading platforms are the center of attention and are of great importance.
When taking mainstream finance into account, there is a division among various levels of operations that is purely based on the functionality criteria, for example, banking, trading work, broking, or the issuance process; each hierarchy has its standards and regulations, and course differs in functionality from one another.
Servais questioned the range by saying, “Is it the case for the crypto market? I would say, most of the time, not. ”
In Servais’ opinion, when we talk about crypto aggregation, we see a clear ascending graph showing the extensive results; the FTX is the best-suited example that fits the situation accurately. The FTX has diverse roots and is equally in demand for various purposes like if you are interested in proprietary trading, or you have to dig in something related to the allowance or even custody, or you need to issue a token, or you have to perform any other activity which is related to it, you can seek assistance. When all these complex yet essential processes are happening under a single roof, it can lead to potential conflicts. So, the diversity offering in bulk is also the seed of conflict.
Furthermore, Servais was well aware of the matter, and he added, “For investor protection reasons, there is a need to provide additional clarity to these crypto markets through targeted guidance in applying Iosco’s principles to crypto assets.”
Moreover, in Servais’s view, “We intend to publish consultations report on these matters in the first half of 2023.”
Iosco is gaining popularity among all the well-known organizations of the world. Whether it is the securities or exchange commissions of the United States, the Bafin organization of Germany, the financial service agency of Japan, or even the UK’s well-known financial conduct authority, all these platforms decided to follow in their footsteps and rely on and imply the Iosco guidelines. The international organization of securities commissions, also known as Iosco, is a governing institute serving as an organization for these regulators.
Servais served as the regulatory in finance in Belgium. According to his experience, the European’s improved and advanced marketing strategy in Cryptocurrency or MiCA platform is a more powerful and worth noting stroke in the market. It is not underrated at all because it lends a helping hand in educating and guiding people all around the world. Therefore, it has a strong emphasis and impact on the surveillance of the crypto operators.
Servais highlighted the matter and added, “I think the world is changing. We know there is some space for developing new standards for the supervision of this kind of crypto conglomerate. There is an obvious necessity,”.
Damalion helps investors to setup their investment funds in Luxembourg. Contact your Damalion expert now to launch your crypto investment fund in Luxembourg.
