The International Organization of Securities Commissions (IOSCO) has released a set of nine policy recommendations aimed at promoting consistent regulatory oversight in the crypto sector. As the global standard-setter for securities markets regulation, IOSCO addresses key issues such as market abuse, conflict of interest, client asset protection, disclosures, and risks associated with cryptocurrencies in these comprehensive guidelines.

These recommendations are significant because they provide detailed treatment for each issue. For example, Rule 7 highlights the importance of enforcing applicable laws and offers insights into potential tools for regulators when dealing with decentralized finance (DeFi) or other market participants attempting to evade regulation.

IOSCO’s goal is to achieve consistency in the regulation of both crypto-asset markets and securities markets, guided by the principle of ‘same activity, same risk, same regulation/regulatory outcome.’

In addition to the recent DeFi recommendations, IOSCO has previously issued guidance on crypto and digital asset markets. The organization emphasizes that decentralization does not exempt entities from regulation and asserts that there are usually responsible persons who control or significantly influence product offerings, service provisions, or engagement in activities, regardless of governance structures or decentralization levels.

With the completion of these recommendations, IOSCO will now focus on monitoring, regulatory capacity building, and providing technical assistance to its members.

This proactive move by IOSCO follows its call for centralized financial bodies to develop parallel, global policies on crypto assets, including considerations for stablecoins.



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