With a number of securities regulatory authorities across the world developing new regulations for the cryptocurrency industry, the International Organization of Securities Commissions (IOSCO) intends to contribute to the ongoing discussion by releasing its own batch of crypto-focused policy recommendations.
IOSCO, which is an international body which brings together the globe’s securities regulatory authorities, has prepared a report with 18 recommendations, and, following a consultation period, intends to complete its work on the proposed measures in the fourth quarter of this year.
New recommendations for securities regulators
“The proposed recommendations are principles-based and outcomes-focused and are aimed at the activities performed by crypto- investment service providers (CASPs). They apply IOSCO’s broadly accepted worldwide standards for securities markets regulation to address key issues and dangers identified in crypto- investment markets,” the organization stated in its report.
“The proposed recommendations are activities-based and follow a ‘lifecycle’ approach in addressing the key dangers identified in this report. They cover the range of activities in crypto- investment markets that involve CASPs from offering, admission to trading, ongoing trading, settlement, market surveillance and custody likewise as marketing and distribution (covering advised and non-advised sales) to retail investors,“ reports by the international body.
Decentralized Finance recommendations report to be released this summer
What is noteworthy, IOSCO stated that its recommendations do not cover activities, products or services provided in the field of decentralized finance (DeFi). This stated, a relevant consultation report with proposed recommendations for Decentralized Finance is to be published thereafter this summer, as indicated by the organization.
In the latest report, IOSCO stated its recommendations cover a total of 6 areas:
- Conflicts of interest resulting from vertical integration of activities and functions;
- Market manipulation, insider trading and fraudulent activities;
- Cross-border dangers and regulatory collaboration;
- Custody and client investment protective measures;
- Operational and technological risks;
- Retail access, suitability, and distribution.
“Given the worldwide nature and certain unique characteristics of the crypto- investment market, the app of robust regulatory standards alongside international regulatory participation will be pivotal to assist secure that any useful innovation can occur without the danger of regulatory arbitrage and lessening standards of investor protection and market integrity,” the report said.
Establish in 1983, IOSCO is based in Spain’s financial resources Madrid. The body’s membership regulates greater than 95 percent of the globe’s securities markets in greater than 130 jurisdictions. Securities regulatory authorities in emerging markets account for 75 percent of the organization’s ordinary membership, reports by data released by IOSCO.
