Crypto Regulations to be changed next year

Crypto assets, wallets, and exchanges are subject to CFT/AML legislation across the world. The EU’s 5AMLD directive classifies them as “obliged entities.” That implies they must do customer due diligence (CDD) and report questionable behaviour (SARs). Because of cryptocurrency’s anonymity and high-risk models, auditors and financial partners have increased their oversight.

Ashley Alder, Chairperson of The International Organization of Securities Commissions (IOSCO), stated during an online conference that they are currently focusing on three primary areas, one of which is cryptocurrency. The other two sectors actively watched by the IOSCO are COVID-19 and climate change. He has hinted to improve the coordination of cryptocurrency regulations.

According to IOSCO’s chairperson, several concerns, such as cyber security, operational resilience, and a lack of transparency, must be addressed prior to the start of the joint organisation. A body to control the regulations governing cryptocurrencies is urgently needed. The governing body will be comparable to the one used by the G20 group for climate change funds.

He went on to say that cryptocurrencies, climate change, and COVID-19 are the three Cs at the top of IOSCO’s agenda for next year, and that comprehensive steps would be made to deal with them properly.