LONDON- International securities watchdog IOSCO unveiled on Tuesday the first global approach to regulating cryptoasset and digital markets, drawing on lessons from last year’s collapse of the exchange that fueled concerns over consumer protection.
The industry, which typically only has to comply with anti-money laundering checks, has been calling for a global approach to regulation as different jurisdictions follow their own rules.
The moves come after crypto exchange FTX began US bankruptcy proceedings last November following a liquidity crisis that prompted intervention from regulators worldwide.
Tuesday’s recommendations are a “turning point in addressing the very clear and proximate risks to investor protection and market integrity risks,” said Jean-Paul Servais, who chairs the International Organization of Securities Commissions (IOSCO).
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. -Reuters
