📄 The world of crypto is evolving, and regulators are stepping up to meet the challenges. A recent report from the International Organization of Securities Commissions (IOSCO) proposes 18 policy recommendations aimed at improving consistency in regulatory frameworks.
👀 These policies, expected to be finalized in Q4, cover the lifecycle of crypto-asset activities, addressing key risks in trading, settlement, market surveillance, and custody. The goal is to address issues of market integrity and investor protection.
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🚫 The six key areas these recommendations focus on are conflicts of interest, market manipulation & fraud, cross-border risks, client asset protection, operational & technological risk, and retail access & distribution.
🚀 IOSCO’s Chairperson Jean-Paul Servais, highlighted the unanimous support from the IOSCO Board for these recommendations, stating the rules would mark a turning point in addressing risks to investor protection and market integrity.
🤝 Chairperson LIM Tuang Lee of the IOSCO Board-Level Fintech Task Force stressed the importance of addressing conflicts of interest in crypto-asset markets, urging regulators to cooperate across borders to uphold market integrity.
🇪🇺 Alongside IOSCO’s efforts, the European Union is also tightening its grip on crypto regulation by introducing the new Markets in Crypto Assets Regulation (MiCA), set to be enforced in 2024.
📈 MiCA will serve to license crypto wallet providers, exchanges, and stablecoin issuers within the EU. This significant step highlights the growing global emphasis on maintaining regulatory oversight of crypto-asset activities.
🏦 Under MiCA, crypto-asset providers must have a registered office in an EU member state and must acquire licensing authorization from local authorities. They must also submit a white paper explaining their product and its operations on the blockchain.
⬆️ Stablecoin issuers face additional scrutiny under MiCA. They are required to obtain a license before issuing their assets and submit a white paper. This further strengthens the EU’s regulatory framework for crypto assets.
🌏 The new guidelines and regulations reflect the global shift towards stricter oversight of the crypto sector. Regulators worldwide recognize the need for clear and consistent rules to ensure the protection of investors and the integrity of the markets.
💸 The evolving landscape of crypto regulation is a clear signal to all market participants. Regulation in this sector is not a matter of if, but when. Stakeholders must be prepared for an era of increased regulatory scrutiny.
The conversation around crypto regulation is just getting started. We’ll keep you updated as more developments unfold in the regulatory landscape.