IOSCO sets out recommendations for regulating cryptocurrencies

The International Organization of Securities Commissions (IOSCO) has published for public consultation policy recommendations for regulating crypto assets.

IOSCO announces global crypto regulation recommendations.

? Link to the Consultation Report ? https://t.co/Je0UQulWFs
? Link to Press Release ? https://t.co/gf9qXuYdwE
? Link to the Crypto-Asset Roadmap 2022/2023 ? https://t.co/Rcth0NkMmt#CryptoAssets #Regulation pic.twitter.com/aqXPmUmQJN

— IOSCO Press (@IOSCOPress) May 23, 2023

The document developed by the association’s experts covers six main areas:

• conflicts of interest arising from vertical integration of activities and functions;
• market manipulation, insider trading and fraud;
• cross-border risks and regulatory cooperation;
• custody and protection of client assets;
• operational and technological risks;
• compliance and suitability of assets for offering to retail markets.

The recommendations are mainly aimed at protecting investors and ensuring market integrity.

“The consultation document presented today received unanimous support from the IOSCO Board and is the result of an intensive period of regulatory risk assessment, information sharing and capacity building,” said Jean-Paul Servais, chair of the organisation.

IOSCO expects that the final version of the document will form the basis for developing unified cross-border rules for the crypto industry. Feedback and comments are invited until July 31.

The organisation brings together 130 members overseeing 95% of the world’s securities markets. Its decisions are not binding on participants.

In 2022, IOSCO formed two working groups led by the SEC and the FCA to develop recommendations for regulating DeFi and crypto assets, respectively.