The International Organization of Securities Commissions (IOSCO) Releases Policy Recommendations for DeFi
The IOSCO has published its final report containing nine policy recommendations aimed at managing risks in the rapidly evolving DeFi space. These recommendations focus on increasing market integrity and investor protection.
IOSCO Stresses the Importance of Consistent Regulatory Frameworks
In their report, the IOSCO emphasizes the need for consistent regulatory frameworks and oversight across member jurisdictions. The recommendations cover key areas such as understanding DeFi structures, achieving standardized regulatory outcomes, and managing risks.
These recommendations complement the policy recommendations for Crypto and Digital Assets (CDA) Markets issued by IOSCO in November 2023. They align with IOSCO’s Crypto-Asset Roadmap 2022/2023 and promote cross-border cooperation.
Implementation Phase and Monitoring Progress
Having delivered these comprehensive recommendations, IOSCO is now focusing on the implementation phase. They will monitor progress and address the capacity-building and technical assistance needs of their diverse membership.
DeFi Market Predicted to Reach $37.04 Billion by 2028
According to Statista, the DeFi market is projected to generate a revenue of $37.04 billion by 2028.
IOSCO Recognizes the Need for a Tailored Approach
The IOSCO acknowledges that jurisdictions are at different stages in addressing crypto-asset market risks. Some already have existing regulatory regimes, while others are still catching up. The organization recognizes the importance of a tailored approach.
IOSCO Chair Jean-Paul Servais expressed satisfaction with the organization’s progress in tackling the risks of crypto-asset markets in a coordinated manner to protect investors globally.
Coherence and Robustness of the Policy Framework
Tuang Lee Lim, Chair of the IOSCO Board-Level Fintech Task Force, highlighted the coherence and robustness of the policy framework in fostering responsible innovation, investor protection, and market integrity outcomes in crypto-asset markets.
Hot Take: IOSCO Releases Policy Recommendations to Manage DeFi Risks
The International Organization of Securities Commissions (IOSCO) has published its final report, providing nine policy recommendations to address risks in the DeFi space. These recommendations aim to enhance market integrity and protect investors. IOSCO emphasizes the need for consistent regulatory frameworks and oversight across member jurisdictions. The report also highlights the projected revenue growth of the DeFi market, reaching $37.04 billion by 2028. The organization recognizes the diverse stages of jurisdictions in addressing crypto-asset market risks and acknowledges the importance of a tailored approach. IOSCO is committed to implementing these recommendations, monitoring progress, and supporting its members’ capacity-building needs.
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