The International Organization of Securities Commissions (IOSCO) has unveiled the first global approach to regulating cryptoassets and digital markets. The proposed standards cover dealing with conflicts of interest, market manipulation, cross-border regulatory cooperation, custody of cryptoassets, operational risks, and treatment of retail customers. The 18 measures planned apply long-established safeguards from mainstream markets to eliminate conflicts of interest between the different parts of a crypto transaction.
IOSCO, an umbrella group of regulators such as the U.S. Securities and Exchange Commission, Japan’s Financial Services Agency, Britain’s Financial Conduct Authority and Germany’s BaFin, is canvassing public opinion on the regulations. The move follows the European Union’s finalisation this month of the world’s first set of comprehensive rules, piling pressure on Britain, the United States and other countries to come up with their own norms.
The proposed regulations are a response to the collapse of the FTX exchange last year, which highlighted the need for global standards to protect investors and ensure market integrity. IOSCO aims to finalise the standards by the end of the year, and expects its 130 members worldwide to use them to plug gaps in their rulebooks promptly.