The International Organization of Securities Commissions (IOSCO) has released its first global framework on cryptocurrencies.
The global crypto market continues to gain momentum with regulatory clarity and initiatives from countries. The European Union’s crypto regulations, MiCA, were described as a big step forward. On the other hand, Hong Kong’s crypto policy draws attention.
In the midst of all these processes, a new move came by IOSCO. IOSCO has released its first global framework for crypto. However, decentralized finance (DeFi) applications were not included in this framework.
Global Crypto Regulations Take Shape
The International Organization of Securities Commissions (IOSCO) has published its first study on crypto standards.
IOSCO has submitted 18 crypto policy recommendations as part of its published framework. These recommendations cover six key areas. These; conflicts of interest, market manipulation, cross-border risks, custody and asset protection, operational and technological risk, and retail access.
One of these policy recommendations is advice to regulators. The text of the recommendation recommends that regulators require crypto-asset service providers to separate client assets from company assets. The proposal made sense, especially after FTX went bankrupt using client funds.
The recommendations presented by IOSCO focus on central market activities. In this context, DeFi activities are not included in the framework. In addition, IOSCO states that frameworks that follow existing standards for securities regulation should be used.
Earlier, IOSCO produced a comprehensive report on crypto regulations and stated that it will publish its recommendations by the end of this year.
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