Global Securities Regulators Seeks Consultation On Crypto Regulation

News, Regulation | May 29, 2019 By:

The International Organization of Securities Commission (IOSCO) is seeking feedback on key considerations for regulating crypto trading platforms (CTP).

IOSCO, an association of organizations that regulate the world’s securities and futures markets, published a consultation paper, titled “Issues, Risks, and Regulatory Considerations Relating to Crypto-Asset Trading Platforms,” that describes the risks and issues that IOSCO has identified regarding CTPs, including access to trading platforms, safeguarding investors’ assets, conflicts of interest, operations, market integrity, price discovery, and technology.

According to the IOSCO, the aim of the consultation report is to assist IOSCO members in evaluating the issues and risks relating to CTPs.

“Many of the issues related to the regulation of CTPs are common to traditional securities trading venues, but may be heightened by how CTPs are operated,” IOSCO said. “Where a regulatory authority has determined that a crypto-asset is a security and falls within its remit, the basic principles or objectives of securities regulation should apply. The report, therefore, sets out that the IOSCO Principles and Methodology provide useful guidance for regulatory authorities considering the identified issues and risks.”

The IOSCO Principles and Methodology also facilitate the promotion of IOSCO’s core objectives of securities regulation, which include protecting investors and ensuring that the markets are fair, efficient and transparent.

“IOSCO will continue to monitor the evolution of the markets for crypto-assets to ensure the issues, risks and key considerations identified in this report remain relevant and appropriate,” IOSCO said. “This approach is in line with the G20´s 2018 communique that called on international standard setting bodies “to continue their monitoring of crypto-assets and their risks, according to their respective mandates, and assess multilateral responses as needed.”