IOSCO, the global regulatory authority responsible for supervising securities markets, has issued a definitive report that presents policy recommendations for markets dealing with cryptocurrencies and digital assets (CDAs).
The recommendations outlined in this report are pivotal in developing a cohesive global regulatory strategy to tackle the significant risks to investor protection and market integrity posed by centralized intermediaries in the crypto asset realm, commonly called crypto asset service providers (CASPs).
However, IOSCO’s precise and targeted recommendations comprehensively delineate regulatory anticipations. As per the report, these anticipations can be met by enforcing existing rules or introducing new ones, depending on the jurisdiction. The objective is to address the identified areas of significant harm within these markets.
As per the announcement, the recommendations for Crypto and Digital Assets (CDA) establish a clear and robust global regulatory framework. Additionally, this guarantees that Crypto Asset Service Providers (CASPs) adhere to the business conduct standards in traditional financial markets.
Global Oversight: Unveiling IOSCO Strategic Objectives For Securities Regulation
The proposals include important areas and align with IOSCO’s objectives and guiding principles for securities regulation, as well as relevant guidelines, best practices, and supporting standards. However, The six domains identified in the research address conflicts of interest arising from vertical integration, insider trading, market manipulation, fraud, custody, cross-border risks, regulatory collaboration, operational and technological risk, and retail distribution.
Moreover, IOSCO is a consortium of regulators overseeing securities and futures. Its board comprises 35 regulators and high-ranking executives, including the United States Commodity Futures Trading Commission leaders, the U.S. Securities and Exchange Commission, and the United Kingdom Financial Conduct Authority.
The organization previously released research on influencers, stablecoins, and DeFi in 2022. The IOSCO advises national regulators to obtain regulatory channels for consumer complaints regarding deceptive and unlawful marketing and evidence-tracking procedures to handle online content’s rapidly evolving and fast-paced nature.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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