The International Policy Forum, an umbrella structure for global securities regulators, announced that it has published nine policy recommendations for consultation to address market integrity and investor protection issues arising from decentralized finance (DeFi).。

The recommendations cover six key areas and are consistent with IOSCO securities regulatory objectives and principles and relevant IOSCO standards, recommendations and practice directions:

(1) Understand DeFi arrangement and structure

(2) Common standards for achieving regulatory results

(3) Identification and management of key risks

(4) Clear, accurate and comprehensive disclosure

(5) Enforcement within the scope of the law

(6) Cross-border cooperation

Jean-Paul Servais, Chairman of the IOSCO Board of Directors, said:

"By further enhancing the consistency of regulatory and supervisory frameworks among member jurisdictions, this DeFi proposal complements the May 2023 release of cryptocurrencies and digital assets."。Once finalized, the two sets of recommendations will provide the first clear, interoperable and globally consistent policy framework for crypto and digital assets, including DeFi.。

The report marks an important step forward in achieving both investor protection and market integrity regulatory outcomes that are consistent with those required for traditional financial markets in IOSCO's 130 member jurisdictions.。"

Tuang Lee Lim, chairman of IOSCO's board-level fintech task force, said:

"There is a common misconception that DeFi is completely decentralized, managed by autonomous code or smart contracts.。In fact, regardless of DeFi's operating model, the "responsible person" can be appointed。We therefore suggest that the identified "responsible person" (whether legal or natural) should bear the responsibility of maintaining the integrity of investors and markets.。"

IOSCO has launched a public consultation with the goal of finalizing the DeFi proposal around the end of 2023 based on the July 2022 crypto asset roadmap and in conjunction with the CDA proposal.。

About IOSCO

IOSCO is the leading international policy forum for securities regulators and is recognized as the global standard setter for securities regulation.。The organization's members oversee more than 95% of the world's securities markets in about 130 jurisdictions and are growing in size.。The IOSCO Board of Directors is the regulatory and standard-setting body of IOSCO and consists of 35 securities regulators.。

The IOSCO Board is chaired by Mr. Jean-Paul Servais, Chairman of the Belgian Financial Services and Markets Authority (FSMA)。IOSCO Board members include securities regulators in Australia, the Bahamas, Bangladesh, Belgium, Brazil, China, Dubai, Egypt, France, Germany, Greece, Hong Kong, India, Ireland, Italy, Japan, South Korea, Kuwait, Malaysia, Mauritius, Mexico, Morocco, the Netherlands, Ontario, Peru, Quebec, Saudi Arabia, Singapore, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States (both the United States Commodity Futures Trading Commission and the United States Securities。The Chairman of the European Securities and Markets Authority and the Chairman of the Advisory Committee of the Affiliate Members of the International Organization of Securities Commissions are also observers。