The International Organization of Securities Commissions (IOSCO) is an association of 130 organizations responsible for overseeing securities and futures. It recently launched a consultation process which should be completed at the end of July. Indeed, on May 23, it published 18 policy recommendations to consult for the management of crypto markets. Here is what it is.
Crypto Industry Takes Mixed Look at New Measures
IOSCO offers a set of standards and measures for global regulation of the crypto market, which is still progressing. The recommendations relate in particular to the management of conflicts of interest within the crypto space and cross-border regulatory cooperation. They also take into account the custody of cryptos as well as the treatment and protection of retail investors. The watchdog also addressed operational risks, insider trading, market manipulation and fraud.
That said, IOSCO explained:One of IOSCO’s goals is to promote greater consistency in how its members approach the regulation and oversight of crypto-asset-related activities, given the cross-border nature of markets, arbitrage risks regulatory and the significant risk of harm to which retail investors continue to be exposed“.
Several players in the crypto industry have reacted to the measures proposed by IOSCO. For example, Mikkel Morch, chairman and non-executive director of the ARK36 fund, said : “While the proposed standards promise to enhance investor protection, it is important to strike the right balance between regulation and innovation to foster the continued growth and development of this dynamic industry.“.
Meanwhile, Bradley Duke, co-CEO of European crypto firm ETC Group, welcomed IOSCO’s initiative. He indicated that it is certainly a stepin the right direction“. He suggested that “any well-thought-out digital asset regulations or guidanceis good to welcome.
The release of IOSCO’s measures comes as crypto businesses in the United States face a massive crackdown. At the same time, companies must fight against the lack of regulatory clarity in the country. Additionally, US regulators like the SEC oppose the rise of several crypto products. In this regard, the SEC previously blocked the Spot Bitcoin ETF, sparking outrage in the community.
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