IOSCO - Consultation Report: Policy Recommendations for Crypto and Digital Asset Markets
IOSCO has issued for consultation detailed recommendations to jurisdictions across the globe as to how to regulate crypto assets.
In a major initiative designed to improve global standards of regulation of crypto-assets, IOSCO has set out how clients should be protected and how crypto trading should meet the standards that apply in public markets.
The Recommendations cover six key areas, consistent with the IOSCO Objectives and Principles for Securities Regulation and relevant supporting IOSCO standards, recommendations, and good practices: 1) Conflicts of interest arising from vertical integration of activities and functions, 2) Market manipulation, insider trading and fraud, 3) Cross-border risks and regulatory cooperation; 4) Custody and client asset protection, 5) Operational and technological risk, and 6) Retail access, suitability, and distribution.
IOSCO aims to finalise its recommendations by the end of the year. Thereafter, it expects that jurisdictions will review their current regulatory frameworks to ensure that they comply with the standards and fix any gaps promptly.
Comments on the consultation paper should be sent to cryptoassetsconsultation@iosco.org on or before 31 July 2023
