IOSCO Releases Final Policy Recommendation Report for Crypto and Digital Asset Markets
Summary:
The International Organization of Securities Commissions (IOSCO) has unveiled a final policy recommendation report for crypto and digital asset (CDA) markets. The report introduces unified global regulatory strategies to curtail substantial risks related to investor protection and market integrity posed by centralized crypto asset intermediaries or crypto asset service providers (CASPs). It suggests employing existing rules or creating new ones per jurisdiction to handle potential harms in these markets. Furthermore, it aims to establish a robust global regulatory foundation for CASPs, making them abide by business conduct standards set in traditional financial markets. The report highlights six critical areas of concern, including conflicts of interest, market manipulation, insider trading, fraud, custodial duties, cross-border risks, and more.
The International Organization of Securities Commissions (IOSCO), a supervisory authority for worldwide securities markets, recently issued a final report suggesting policies for crypto and digital asset (CDA) markets. These proposals are imperative in establishing a cohesive global regulatory strategy addressing the significant risks involved with investor protection and market integrity due to centralized crypto asset intermediaries termed as crypto asset service providers (CASPs). IOSCO's detailed, targeted recommendations elucidate regulatory anticipations clearly, stating that these may be met by implementing established rules or framing new ones, depending entirely on the jurisdiction. The objective is to resolve the crucial areas of potential detriment in these markets.
IOSCO's report suggests from its policy recommendations that a robust and unique global regulatory base for Crypto and Digital Assets (CDA) has been established. This base compels Crypto Asset Service Providers (CASPs) to comply with the professional conduct standards prevalent in traditional financial markets.
The suggestions tackle essential areas and align with IOSCO's objectives and principles for securities regulation, along with associated standards, proposals, and exemplary practices. The report highlights six essential areas that address conflicts of interest, market manipulation, insider trading, fraud, custodial duties, asset security for clients, cross-border risks, regulatory collaboration, operational and technological risks, and retail distribution.
The IOSCO is predominantly a union of securities and futures regulators. It includes 35 top professionals, consisting of the leading figures of the US Commodity Futures Trading Commission, the US Securities and Exchange Commission, and the UK Financial Conduct Authority, among others.
IOSCO had released reports on Decentralized Finance (DeFi), stablecoins, and influencers in the year 2022. The regulatory powers IOSCO suggests that national regulators should adopt include regulatory mechanisms for reporting consumer grievances regarding misleading and unlawful promotions, along with processes for tracking evidence to cope with the swift pace and fluctuating nature of online information.
Published At
11/17/2023 9:38:06 AM
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