IOSCO publishes final policy recommendations for crypto & digital asset markets

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Written on Nov 17, 2023

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IOSCO has finalized recommendations for the cryptocurrency market.
The organization seeks to introduce global guidelines for crypto regulators.
IOSCO wants digital assets providers to prioritize investor & trader protection.

The International Organization of Securities Commissions (IOSCO) has published the final policy recommendations for the cryptocurrency and digital asset industry today.

Today, IOSCO published its final “Policy Recommendations for Crypto and Digital Asset Markets.” In this report, IOSCO seeks to put forth guidelines that can be adopted by global regulators as they implement regulations on crypto in their jurisdictions. While synchronization of…
— Christopher Perkins ????NYC (@perkinscr97) November 17, 2023

The recommendations represent the initial step towards protecting digital investors and ensuring transparency in the crypto markets. Further, the recent IOSCO move addresses global challenges facing market participants due to cryptocurrency exchanges.

Crypto asset providers should prioritize investor protection

IOSCO’s detailed report highlights various crucial areas for regulating cryptocurrency & digital assets markets, including market manipulation, digital fraud, cross-border risks, and vertical integration conflict.

Under the retail distribution category, crypto asset service providers (CASPs) should prioritize investor protection. On this front, CASPs should ensure that investors are aware of the risks related to investing in cryptocurrencies and understand every detail about the products.

Also, digital assets providers should have suitable procedures to avoid selling cryptocurrencies to individuals that might not be appropriate for the asset class, considering facets such as knowledge & experience, investment objectives, and financial conditions.

Notably, IOSCO’s recommendations target a robust global regulatory framework to monitor internet investments, ensuring that crypto service providers follow rules that match the standards of the traditional financial markets.

Meanwhile, IOSCO seeks to ensure a global framework to monitor the evolving digital assets market. The organization wants clear guidelines that international regulators can use to ensure transparency and efficiency digital trading undertakings.