IOSCO's Recommendations and Global Consultation For Regulating Crypto Assets

The International Organization of Securities Commissions (IOSCO) has issued comprehensive consultation recommendations to jurisdictions worldwide on how to regulate crypto assets. This information was disclosed in a press release obtained by Nairametrics.

As part of a significant effort aimed at enhancing global standards for regulating crypto-assets, IOSCO has outlined measures to protect clients. Additionally, the organization has provided guidelines on how crypto trading should adhere to the standards applicable in public markets.

The G7 Finance Ministers, Jean-Paul Servais, Chairperson of IOSCO said:

“As the G7 Finance Ministers and Central Bank communiqué of 13 May has once again reminded us, the time has come to put an end to the regulatory uncertainty that characterizes crypto activities. ”

“Today’s consultation paper received unanimous support from the IOSCO Board and is the outcome of an intense period of regulatory risk analysis, information sharing, and capacity building. ”

“As such, it will mark a turning point in addressing the very clear and proximate risks to investor protection and market integrity risks”.

A Hundred and Thirty Members

According to Servais, with a global membership of 130 members, IOSCO is uniquely positioned to provide an efficient and universally consistent set of policy recommendations, considering its regulation of over 95% of the world's securities markets.

“The strong support of the IOSCO Board will ensure the timely implementation of the recommendations by all IOSCO members to limit the risk of regulatory arbitrage.

Strengthened cooperation between our members while supervising these markets through a global framework will contribute to protecting investors better and to credible deterrence of non-compliant actors,” she said.

THE IOSCO BOARD LEVEL CHAIRMAN SAYS

LIM Tuang Lee, who chairs the IOSCO Board-Level Fintech Task Force responsible for crafting the policy recommendations, expressed the following:

“The Recommendations in IOSCO’s Consultation Report set expectations and guardrails to regulate and supervise crypto-asset markets, which are inherently cross-border in nature. ”

“Crypto-asset service providers need to address unacceptable conflicts of interest and take far more seriously the right of clients to have their monies and assets carefully minded and accounted for.”

“It is time for Regulators to work together across borders and various jurisdictions to ensure that investor protection and market integrity are upheld in crypto-asset markets.” 

IOSCO has initiated a public consultation on its recommendations and plans to conclude them by year-end. It further emphasized the importance of jurisdictions assessing their existing regulatory frameworks, ensuring compliance with the prescribed standards, and addressing any identified shortcomings without delay.