International securities watchdog IOSCO on Tuesday proposed the first global approach to regulating cryptoasset markets, applying lessons from the collapse last year of FTX exchange that raised concerns over consumer protection.
The International Organization of Securities Commissions (IOSCO) proposed standards for dealing with conflicts of interest, market manipulation, cross-border regulatory cooperation, custody of cryptoassets, operational risks, and treatment of retail customers.
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.
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 characterises 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”.
Reuters, IOSCO
