International securities body IOSCO has released proposals for a crypto regulatory framework
The International Organization of Securities Commissions (IOSCO) – the global regulatory body that oversees global securities markets – has released its final report containing policy proposals for the crypto and digital asset (CDA) markets.
The recommendations in the report will play an important role in shaping a uniform global regulatory framework to address the significant threats to investor protection and market integrity posed by centralized crypto asset intermediaries, known as crypto asset service providers (CASPs).
IOSCO's specific and focused recommendations provide an in-depth explanation of regulatory expectations. According to the report, these expectations can be resolved by implementing existing regulations or creating new ones. The aim is to combat the areas of damage identified in these markets.
According to the report, the CDA's recommendations will establish a separate and strong global regulatory foundation, which will ensure that CASPs adhere to business conduct standards applicable to conventional financial markets.
The Recommendations address the critical domains of alignment with IOSCO's goals and principles for safety oversight and relevant supporting standards, recommendations and best practices. The report identified several critical domains: conflicts of interest with vertical integration, market manipulation, insider trading, fraud, protection, protection of customer assets, cross-border risks, regulatory cooperation, operational and technological risks and retail distribution.
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The IOSCO Board includes 35 regulators and senior executives, such as the heads of the United States Commodity Futures Trading Commission, the US Securities and Exchange Commission and the United Kingdom's Financial Conduct Authority, among others.
Earlier in 2022, the organization published reports on DeFi, stablecoins and influencers. The regulatory capabilities that IOSCO recommends that national regulators adopt include regulatory sites to address user complaints to mislead and report illegal promotions and evidence-based monitoring processes to deal with the fast-paced and dynamic nature of online information.
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