• The International Organization of Securities Commissions (IOSCO) announced that it will launch a consultation for its regulation report on crypto assets in Q2 2023.
• IOSCO’s Fintech Task Force plan includes two major workflows dedicated to decentralized assets, covering crypto and digital assets, and DeFi.
• The organization is focused on investors protection by developing sustainable and innovative capital markets while enhancing investor protection, maintaining market integrity and reducing systemic risk.
IOSCO Prepares Crypto Regulation Report
The International Organization of Securities Commissions (IOSCO) shared its vision of stablecoin arrangements, decentralized finance and “finfluencers” with plans to launch a consultation for its regulation report on crypto assets in Q2 2023. The final recommendations from the organization are planned to be published by the end of 2023.
Fintech Task Force Plan
IOSCO’s Fintech Task Force plan includes two major workflows dedicated to decentralized assets: one covering crypto and digital assets, and another covering decentralized finance (DeFi). The DeFi consultation will start in Q3 of 2023.
Through the outcomes of its work, IOSCO seeks to support the development of sustainable and innovative capital markets, while enhancing investor protection, maintaining market integrity, and reducing systemic risk. IOSCO urges national regulators to take “a granular and holistic understanding” of the activities that occur within DeFi protocols in order to identify any potential risks associated with them.
In 2022, the organization published reports on DeFi, stablecoins and influencers. The supervisory capacities that the IOSCO recommends national regulators acquire include regulatory channels to report consumer complaints for misleading or illegal promotions as well as evidence-tracking processes to cope with online information changes occurring at a fast pace .
In conclusion, IOSCO is taking steps towards greater regulation around cryptocurrency investments by launching consultations for their regulation report in Q3 2023. Through their reports they aim to promote sustainable capital markets while also protecting investors from potential risks associated with these technologies.