The International Organization of Securities Commissions Report on Crypto and Digital Asset Markets
The International Organization of Securities Commissions (IOSCO) has released a comprehensive report with policy suggestions for crypto and digital asset (CDA) markets. The report aims to address the substantial risks to investor protection and market integrity posed by centralized crypto asset service providers (CASPs).
Regulatory Expectations for Crypto Markets
The report provides specific and focused recommendations that explain regulatory expectations, emphasizing the need for existing or new rules to tackle critical areas of harm in these markets. The goal is to establish a distinct and robust global regulatory foundation, ensuring CASPs adhere to business conduct standards applicable in conventional financial markets.
Key Areas of Concern
The report identifies several critical domains, including conflicts of interest, market manipulation, insider trading, fraud, custody, client asset protection, cross-border risks, regulatory cooperation, operational and technological risk, and retail distribution.
Global Regulatory Approach
The IOSCO’s board comprises 35 regulators and top executives from various countries. The organization’s previous reports covered DeFi, stablecoins, and influencers. The IOSCO recommends that national regulators acquire supervisory capacities to address consumer complaints and cope with online information’s fast pace and changing nature.
Hot Take: IOSCO’s Impact on Global Crypto Regulation
The IOSCO’s report sets the stage for a unified global regulatory approach to crypto markets. By addressing key areas of concern and emphasizing regulatory expectations for CASPs, the report aims to ensure investor protection and market integrity in CDA markets. It also highlights the need for national regulators to enhance their supervisory capacities in response to the evolving nature of online information and consumer complaints in the crypto space.
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