IOSCO issues recommendations for global crypto regulation

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on  May 23, 2023
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2 min read
  • IOSCO explores a global roadmap for crypto regulation, citing consumer protection.
  • Recommended rules cover retail treatment, conflicts, market manipulation, and cross-border cooperation.
  • That follows increased regulatory pressure after MiCA's legislation.

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IOSCO (International Organization of Securities Commissions) has announced a broad strategy to ensure a balanced regulatory landscape for cryptocurrency assets and investor protection. The initiative aims to clear worries over consumer protection, drawing lessons from FTX’s demise last year.

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IOSCO’s inclusive regulatory strategy

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The IOSCO rules come as a response to crypto regulation concerns. Moreover, they might alleviate worries that rose after the exchange FTX fell. Several cryptocurrency businesses closed their doors since FTX’s debacle, citing regulatory pressure and liquidity crisis.

Meanwhile, the events saw the crypto community calling for an inclusive regulatory framework for the industry. Remember, different countries have varying crypto rules, leading to treatment disparities.

Jean-Paul Servais, IOSCO Chair, stated that the recommended standards would be a game-changer, trusting that they will handle investor risks and ensure market integrity. The proposed roadmap includes market manipulation, retail customer treatment, conflicts of interest, cross-border regulation, and crypto asset custody.

Moreover, the regulation prescribed policies for massive conflict-of-interest prevention. The top global organization that unites international securities watchdogs plans to issue the final laws by 2023-end. Meanwhile, IOSCO’s 130 member nations would have to integrate the rules promptly.

The board comprises securities regulators from different countries, including the US, UK, Dubai, China, Australia, Belgium, and Brazil. The report revealed that the consultation process is underway, and the regulator seeks public views on the recommended regulations.

Furthermore, the plan emerges as the EU prepares for immense regulation enactment for the market by mid-next year. The latest Market in Crypto-Assets legislation approval represents a substantial move toward inclusive regulation.

Cryptocurrency experts believe European Union’s move should pressure other nations, especially the United States, to form crypto regulatory frameworks. Some trust that Unite State’s uncertainty could be repelling large investors from participating in the crypto space. He believes top competitors such as South Korea and the United Arabs Emirates will likely overtake the US soon.

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