Securities Watchdog To Regulate Crypto: IOSCO Unveils 18 Recommendations

• International Organization of Securities Commissions (IOSCO) has released a report with 18 recommendations for global securities regulators to help regulate the crypto industry.
• These principles-based and outcomes-focused recommendations are aimed at activities performed by Crypto Asset Service Providers (CASPs).
• IOSCO will be releasing a DeFi consultation report later this summer with proposed recommendations.

What is IOSCO?

The International Organization of Securities Commissions (IOSCO) is an international body which brings together the globe’s securities regulators. It works to develop, implement, and promote adherence to internationally recognized standards for securities regulation.

IOSCO’s Recommendations on Crypto Regulation

IOSCO has prepared a report with 18 recommendations, and, following a consultation period, aims to complete its work on the proposed measures in the fourth quarter of this year. The proposed recommendations are principles-based and outcomes-focused and are aimed at activities performed by Crypto Asset Service Providers (CASPs). They apply IOSCO’s widely accepted global standards for securities markets regulation to address key issues and risks identified in crypto-asset markets. The six areas covered include: conflicts of interest resulting from vertical integration; market manipulation, insider trading and fraudulent activities; cross-border risks and regulatory collaboration; custody and client asset protective measures; operational and technological risks; retail access, suitability, and distribution.

DeFi Consultation Report

IOSCO said that its current recommendations do not cover activities, products or services provided in the field of decentralized finance (DeFi). A relevant consultation report with proposed recommendations for DeFi is to be published later this summer according to IOSCO.

Global Standards For Securities Markets Regulation

The adoption of robust regulatory standards alongside international regulatory cooperation will be pivotal in helping ensure that any useful innovation can flourish while protecting investors from harm according to IOSCO’s latest report. Their mission is to help protect investors from potential fraud or manipulation while allowing legitimate innovation to prosper within the industry.


It will be interesting to see how these new regulations affect the cryptocurrency industry in 2021 when they take effect later this year after undergoing through a consultation period!