The IOSCO (International Organization of Securities Commission) invited the public for comment this Tuesday, regarding its proposed guidelines for cryptocurrencies and digital assets.
It proposed 18 policies that would cover a range of issues, from conflict of interest, market abuse, and client asset protection, as well as risks associated with crypto.
In 2022, a global policy forum consisting of securities regulators from approximately 130 countries formed the Fintech Task Force (FTF) to shape IOSCO's regulatory plans regarding fintech and digital assets. Led by the Monetary Authority of Singapore, the FTF comprises representatives from 27 out of 33 board member jurisdictions.
As one of two parts of the Fintech Task Force (FTF), the U.K.'s Financial Conduct Authority is expected to release recommendations for crypto assets this year. Simultaneously, the U.S. Securities and Exchange Commission dedicated another group to decentralized finance (DeFi).
After the collapse of FTX, a crypto exchange, and Terra, a stablecoin issuer, the calls for stricter regulations have become more common, especially from the global standard-setters. Financial Action Task Force (FATF), an international financial crimes watchdog has called on the Group of Seven (G-7), the advanced economies, to lead in the implementation of the norms for preventing money laundering.
As Jean-Paul Servais, a chairperson of IOSCO, said in his statement to the press:
“As the G-7 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.”
Financial Stability Board (FSB) worked on the creation of a recommendation for stablecoin, which is set to be published later this year. Meanwhile, FSB is also cooperating with International Monetary Fund (IMF) on the synthesis paper, which will serve as a base for the creation of global crypto regulations, with the consultation period due 31st July 2023.
