On Tuesday afternoon, Bitcoin experienced a rise of 1.5%, surging back over the $27k mark to stand at $27,268, as the initial worldwide effort to regulate cryptocurrency assets was proposed.
The International Organization of Securities Commissions, which oversees financial markets, has rolled out an 18-point blueprint designed to put safety measures in place for cryptocurrency investments.
Susannah Streeter, the Money and Markets Lead at Hargreaves Lansdown, noted, “The global watchdog, representing authorities that oversee financial markets worldwide, has taken this step not only to protect investors but also to propel cryptocurrencies further into mainstream acceptance.”
“Bitcoin appears to have been boosted by the news of this coordinated move to regulate the sector, increasing by more than 2%. The cryptocurrency has seen a 64% gain since the start of the year, largely recovering from the sharp declines it experienced in the latter half of 2022. Despite the volatility, it is evident that the IOSOC is acknowledging the permanence of digital coins and tokens, which is why they’re advocating for a global method to govern this high-risk asset class.”
She further explained, “When FTX crashed dramatically, it sent shockwaves – beyond just the crypto community – affecting the broader financial system as the multitude of diverse companies owed money became obvious. This ripple effect caused concern among regulatory bodies and spurred this pivotal response from the IOSOC.
It aims to enforce rules similar to those governing equity and bond markets in the crypto space, including regulations concerning conflicts of interest, operational risks, handling of market manipulation, and the treatment of retail customers.
“This action by the global watchdog closely follows MPs advocating for the government to categorize crypto investments as gambling. The urgency for regulation is unmistakable, and with these safety measures now outlined, there is mounting pressure on individual jurisdictions, including the UK, to develop a solid strategy for regulating the market.”
