The International Swaps and Derivatives Association (ISDA) is planning to publish its initial set of standards and definitions for the OTC crypto derivatives market by the end of 2022.
According to Regulation Asia, the industry body established a working group last year to develop uniform legal standards and definitions for crypto derivatives.
In December 2021, ISDA published a whitepaper exploring key issues the working group is seeking to address with the new standards.
This work will lead ISDA to produce a framework for handling cyber-attacks, forks, airdrops, and valuation issues that are unique to crypto derivatives markets.
ISDA wants to bring the same legal certainty that exists in other derivatives asset classes to the OTC crypto derivatives market.
ISDA is still also working to ensure a risk-appropriate capital framework is adopted by the BCBS (Basel Committee on Banking Supervision) as it progresses efforts to finalise its framework on the prudential treatment of bank exposures to crypto assets.
The authority has also recommended changes to try and achieve a framework that is more risk appropriate.
Genesis, a cryptocurrency brokerage, recently said it was reportedly set to receive a $140m equity infusion from its parent company, Digital Currency Group, to support its balance sheet.
This equity is being deployed, after Genesis announced its derivatives business has $175m locked in a trading account of FTX, according to a report from Bloomberg. Last week, FTX filed for bankruptcy protection.
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