IOSCO Proposes Regulatory Framework for Crypto Assets
Key Takeaways
- IOSCO has released a report containing policy recommendations to regulate cryptocurrency and digital asset markets globally.
- The recommendations aim to align the business conduct of cryptocurrency asset service providers with existing financial market standards.
- This report covers a broad range of regulatory areas, reflecting IOSCO’s efforts to strengthen investor protection and market integrity in the digital asset sector.
International Organization of Securities Commissions (IOSCO)the global body responsible for regulating securities markets, has published an important report explaining: Policy recommendations for regulating cryptocurrencies and digital assets (CDA).
Recommendations include: It plays a pivotal role in forming a cohesive global regulatory system. The goal is Manage risks related to investor protection and market health.This is especially true when it comes to Crypto Asset Service Providers (CASPs).
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IOSCO’s detailed recommendations are as follows: Apply existing regulations or Formulate new ones to mitigate risks region In the CDA market.
The organization emphasizes that best practices include: Establishing a strong regulatory framework for CASPsAlign with standards observed in traditional financial markets.
The report identifies: Several key areas of regulatory focus:This includes managing conflicts of interest, preventing market manipulation, insider trading, and fraud, ensuring the custody and safety of customer assets, addressing cross-border risks, promoting regulatory cooperation, and managing operational and technical risks.
these domains It is consistent with IOSCO’s overarching principles and goals. for securities regulationCovers relevant standards, recommendations and best practices.
IOSCO’s 35-member Board of Directors supports these recommendations.includes prominent figures from the U.S. Commodity Futures Trading Commission, the U.S. Securities and Exchange Commission, and the U.K. Financial Conduct Authority.
In 2022, IOSCO also released an insightful report on the impact of influencers in the decentralized finance (DeFi), stablecoins, and digital asset space.
The agency recommends to national regulators: Strengthen supervisory capacityThis includes establishing mechanisms for handling consumer complaints regarding misleading or unlawful promotions and developing processes to resolve them. Track rapidly changing online information.
IOSCO’s newly released policy recommendations are an important step toward establishing a global regulatory framework for cryptocurrency and digital asset markets. The recommendations aim to align CASP with traditional financial market standards and strengthen investor protection and market integrity.
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