Int’l securities body IOSCO prepares crypto regulation report for 2023

Regulation

The International Organization of Securities Commissions (IOSCO) will 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. 

The dates are scheduled in IOSCO’s work program for 2023–24. Two major workflows are dedicated to decentralized assets in IOSCO’s Fintech Task Force plan. The first covers crypto and digital assets, and the second covers decentralized finance (DeFi). The DeFi consultation will start in Q3 of 2023.

According to the work program text, in both areas of the digital market, the IOSCO will focus on investors protection:

“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.”

Previously, 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 and illegal promotions, and evidence-tracking processes to cope with the fast pace and changing nature of online information.

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As for DeFi, the IOSCO urged national regulators to take “a granular and holistic understanding of the DeFi market,” which could enhance their ability to create laws relevant legislation.

The 2022 report on stablecoins was delivered by the IOSCO and the Bank for International Settlements. Both bodies define the stablecoin arrangement, which “combines a range of functions to provide an instrument that purports to be used as a means of payment and/or store of value.”

The IOSCO is an association of securities and futures regulators. Its board comprises 35 regulators and top executives, such as the heads of the United States Commodity Futures Trading Commission, the U.S. Securities and Exchange Commission, and the United Kingdom Financial Conduct Authority — among others.

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