International Organization of Securities Commissions (IOSCO), which is the leading global standard setter for securities markets, has proposed comprehensive guidelines to enhance the regulation of crypto assets worldwide. The guidelines aim to safeguard clients’ interests, maintain market integrity, and ensure that crypto trading adheres to the same rigorous standards applicable to public markets. The recommendations address areas such as conflict of interest management, prevention of market manipulation, cross-border collaboration among regulatory bodies, secure custody of cryptocurrency assets, mitigation of operational risks, and fair treatment of retail customers. According to IOSCO chair Jean-Paul Servais, the guidelines mark a significant milestone in addressing the immediate and evident risks to safeguarding investors and maintaining market integrity.
The recommendations follow the initiation of bankruptcy proceedings by FTX, a crypto exchange in the United States, in November last year, which triggered global regulatory intervention due to a liquidity crisis. To achieve global consistency in digital currency oversight, IOSCO has initiated a public consultation process, inviting stakeholders from various sectors to provide their insights and feedback on the proposed standards. This inclusive approach ensures that the final recommendations encompass diverse perspectives and address the multifaceted challenges associated with cryptocurrencies.
IOSCO recognizes the significance of timely implementation, aiming to prompt jurisdictions worldwide to review and enhance their existing regulatory frameworks to align with the proposed standards. This proactive approach enables jurisdictions to identify and rectify any gaps or shortcomings swiftly, bolstering investor protection and promoting market integrity in the rapidly evolving landscape of cryptocurrency. The objective is to finalize the recommendations by the end of the year, allowing sufficient time for rigorous analysis and consideration of the input received during the consultation period.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
View J-S Tremblay website
