The securities body released a comprehensive report on a crypto regulatory framework and provided multiple suggestions to regulate such markets.
Crypto regulation has been a persistent important matter for the crypto industry recently. Various government and private organizations have called for it. The EU parliament has supported a global consensus on crypto assets and their regulation in Europe. The region already has crypto laws in the form of the MiCA framework. With the current climate, a securities organization, the IOSCO, has also released a crypto regulatory framework report.
The International Organization of Securities Commissions (IOSCO) has provided several suggestions in the report. The framework mainly provides 18 recommendations on six major areas of the crypto market. The sections include market manipulation, conflict of interest, cross-border risks, and protection and custody of client assets. Further, it also includes technological and operational risks, distribution, suitability, and retail access.
The report claimed the recommendations would create a global regulatory foundation for crypto and digital asset markets. Moreover, it said crypto asset providers would also adhere to the necessary rules.
The report stated, “The 18 IOSCO policy recommendations for the regulation of crypto and digital assets included in this Final Report are designed to support greater consistency with respect to regulatory frameworks and oversight in IOSCO member jurisdictions, to address concerns related to market integrity and investor protection arising from crypto-asset activities.”
The IOSCO also said its goal was to ensure that members would consistently approach the recommendations. Moreover, it would aim to generate significant cooperation between regulators. With multiple securities regulators worldwide as members of the IOSCO, the recommendations could be truly a turning point.
On the other hand, the crypto space in regions such as Hong Kong and the United Kingdom has made remarkable progress in regulation.
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