According to a report released on Wednesday by the International Organization of Securities Commissions (IOSCO), securities authorities should have the authority to order the removal of international cryptocurrency websites.
The suggestions come amid concerns about increasing incidents of money laundering, tax evasion, financial stability, and the surge in financial advice given by unconventional sources like social media influencers in the crypto industry.
The research stated that as financial services move online, regulators must adjust quickly. Cryptocurrencies can be particularly transparent and volatile, according to the Madrid-based organisation, whose members include the U.S. SEC and equivalents from around the world.
Digital fraudsters can themselves behind a “digital veil,” according to IOSCO Secretary General Martin Moloney, making it challenging for authorities to find, identify, and take action against them.
The research further indicated that new collaboration mechanisms may be created to ensure that nations around the globe have a unform regulatory approach towards the crypto industry.
According to the research, digital products can dupe investors while evading laws that apply to traditional financial instruments like equities. However, IOSCO believes it has discovered a solution to the issue of global crypto marketing, where sales advertised in markets like the U.S. may actually come from other nations.
The Financial Stability Board, a different international standard-setter, called for a detailed multinational crypto rulebook less than a week after IOSCO released its report, limiting the ability of crypto businesses to avoid regulation by choosing the simplest country. A new IOSCO Fintech Working Group is also in-depth investigating cryptocurrencies and decentralised finance.