The organization that brings together 255 different regulators and securities market representatives has presented suggestions for a global regulatory framework to regulate crypto and digital assets (CDA).

Global Approach for Crypto Regulation

The International Organization of Securities Commissions (IOSCO) has published a list of global recommendations for regulating various digital assets, including cryptocurrencies. The standards described in the document, as envisioned by its drafters, can be instrumental in forming a unified global regulatory approach aimed at protecting investors and market integrity and addressing existing risks posed by crypto-asset service providers (CASP). 

Specifically, the proposed regulations cover the following issues: 

  1. Conflicts of interest. 
  2. Market manipulation, insider trading, and fraud. 
  3. Cross-border risks and regulatory cooperation.
  4. Custody and client asset protection. 
  5. Operational and technological risks. 
  6. Retail access, suitability, and distribution.

The recommendations described in the paper reflect global trends in digital asset regulation. The ultimate goal is to eliminate critical risks in these areas. In addition, the implementation of these recommendations will help form a regulatory basis for CASPs to comply with the standards of business behavior applicable to conventional financial markets.

In late May 2023, the participants of the World Economic Forum also called for global coordination in the regulation of cryptocurrency assets, noting the crucial role of international cooperation in this matter. 

Author: Alex Golovakha
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