The International Organization of Securities Commissions (IOSCO), an influential global regulatory entity overseeing securities markets, has issued a comprehensive report outlining policy proposals directed at the cryptocurrency and digital asset (CDA) market.
These recommendations are pivotal in developing a unified global regulatory approach to tackle significant risks associated with crypto centralized-asset intermediaries, commonly known as crypto-asset service providers (CASPs), aiming to safeguard investor protection and market integrity.
The report's specific guidance outlines supervisory expectations to address areas of concern, emphasizing the necessity for adherence to existing regulations or the formulation of new ones, depending on the jurisdiction. The overarching goal is to mitigate identified threats and risks prevalent within these markets. IOSCO's CDA recommendations seek to establish a robust regulatory framework that ensures CASPs adhere to standards of business conduct akin to those in traditional financial markets.
Encompassing various key facets, these recommendations align with IOSCO's securities regulatory objectives, principles, and corresponding standards, offering guidance on conflicts of interest, market manipulation, insider trading, fraud, custody, customer asset protection, cross-border risks, regulatory cooperation, operational and technological risks, as well as retail distribution.
Comprising 35 regulators and executives, IOSCO's board of directors includes prominent figures such as heads of regulatory bodies like the US Commodity Futures Trading Commission, the US Securities and Exchange Commission, and the UK's Financial Conduct Authority, among others. In previous releases, IOSCO has covered reports on DeFi, stablecoins, and influencer engagement in 2022. The organization encourages national regulators to bolster supervisory capabilities, urging the reinforcement of channels for reporting consumer grievances regarding misleading or illicit promotional practices, and the establishment of evidence-tracking mechanisms to navigate the dynamic landscape of online information dissemination.
