The International Organization of Securities Commissions (IOSCO) - whose members oversee more than 95% of the world's securities markets in more than 130 jurisdictions - has now released its Final Report on Market Policy Recommendations for Cryptocurrencies and Digital Assets (CDAs), following a consultation in May 2023 on detailed recommendations on how to regulate cryptocurrencies and digital assets in a more coordinated manner worldwide.。

The IOSCO said the recommendations are essential for a coordinated global regulatory response to the significant investor protection and market integrity risks posed by centralized crypto asset intermediaries known as crypto asset service providers (CASPs).。

IOSCO's detailed and targeted recommendations elaborate on regulatory expectations, according to different jurisdictions, through the application of existing rules or the development of new rules to address the key hazard areas observed in these markets。

The CDA recommendations set a clear and robust international regulatory baseline to ensure CASP meets the standards of business conduct applicable to traditional financial markets.。

The Recommendation covers six key areas and is consistent with IOSCO's Securities Regulatory Objectives and Principles and relevant supporting IOSCO standards, recommendations and good practices:

1. Conflicts of interest arising from vertically integrated activities and functions
2. Market manipulation, insider trading and fraud
3. Custody and customer asset protection
4. Cross-border risk and regulatory cooperation
5. Operational and technical risks
6. Retail Distribution

Jean-Paul Servais, Chairman of IOSCO, said: "The publication of the IOSCO Cryptocurrency and Digital Asset Market Report is an important first step to ensure that investors are protected and that the crypto-asset market operates fairly, efficiently and transparently.。The report is an important part of the international framework envisaged by the G20 and the FSB for these markets.。Next, our attention will turn to ensuring that these recommendations are adopted and implemented to support optimal consistency in the way crypto asset markets and activities are regulated in IOSCO member jurisdictions.。

Tuang Lee Lim, Chair of the IOSCO Board-level FinTech Task Force, established to develop policy measures, said: "Our focus is on ensuring that these recommendations are adopted and implemented: the activities of the small arms and light weapons market and its associated risks often mirror those of traditional financial markets.。Therefore, the regulatory approach adopted is consistent with IOSCO's securities market regulatory principles and related standards。The 18 recommendations for the cryptocurrency and digital asset markets focus on results and are based on the principle of "same activity, same risk, same regulatory outcome."。

As early as September 2023, IOSCO consulted separately on policy recommendations for DeFi (short for "decentralized finance") and said it would finalize them by the end of 2023.。At that time, IOSCO will also issue an umbrella note explaining in more detail the interoperability between the two sets of recommendations.。