Global Securities Watch Proposes Rules for Crypto Assets By Reuters

© Reuters. FILE PHOTO: Commemorative tokens representing the Bitcoin cryptocurrency and the Ethereum network, with the original native ether, sink into the water in this illustration taken May 17, 2022. REUTERS/Dado Ruvic/File Photo

LONDON (Reuters) – Global regulators will soon propose the first set of international rules for crypto assets, including how existing standards apply to the sector, a global regulator said on Tuesday.

Crypto-asset companies are calling for a globally coordinated approach to give certainty to the sector as it faces a “fire hose” from various avenues.

The European Union on Tuesday approved a first set of sweeping rules, a move companies said would entice them to set up shop in the bloc.

“Once finalized, the recommendations will present the first set of globally harmonized rules for crypto assets,” Jean-Paul Servais, head of global securities regulator IOSCO, said at an event held by the Association of Managed Funds in Paris.

IOSCO members such as the US Securities and Exchange Commission, Japan’s Financial Services Authority and regulators in Britain, Germany and France are obligated to implement the body’s recommendations.

The collapse of large cryptocurrency operators, such as FTX, and recent market events have fueled “my determination to advance this agenda,” Service said.

“As I have said time and again, the IOSCO recommendations will show the extent to which existing principles and guidance can be applied to virtual assets and service providers across borders,” Service said.

Servais, who also heads Belgium’s securities regulator, said private financing will be a new priority for IOSCO’s work this year.

“Renewed regulatory interest in this area comes from the unprecedented growth of private finance, its increasing role in financing the real economy, and its increasing interdependence with regulated public markets,” Service said.