The International Organization of Securities Commissions (IOSCO) suggested that countries adopt the traditional financial regulatory framework to regulate the crypto sector.
In the present time, the majority of the countries are working on a perfect model of the crypto regulation framework, to keep the illegal activities away from this innovative sector. In the race for crypto regulation efforts, there are a few countries that are struggling badly to develop new laws to regulate this sector.
On 23 May 2023, The International Organization of Securities Commissions (IOSCO) made 18 core suggestions for the countries, so that they can get better help to develop a new regulatory framework to regulate the crypto sector.
IOSCO, the international authority responsible for setting standards in securities markets, has released comprehensive recommendations for jurisdictions worldwide on the regulation of crypto-assets.
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Press Release
https://t.co/uir91HSqNs#CryptoAssets #Regulation pic.twitter.com/Rf8arRTZV1
— IOSCO Press (@IOSCOPress) May 23, 2023
According to this global Securities regulatory body, all the countries’ regulators need to use the existing traditional financial regulation system to regulate the digital assets market and if they face any challenges to regulating the crypto sector with the traditional rules then go ahead to develop new rules in those certain challenging areas.
IOSCO document read:
“The regulatory approach should seek to achieve regulatory outcomes for investor protection and market integrity that are the same as, or consistent with, those that are required in traditional financial markets.”
The watchdog also suggested the regulators follow the bilateral/multilateral cooperation approach to enforce & regulate the sector, to ensure that companies can be supervised effectively.
UK crypto regulatory approach
The crypto regulatory approach & recommendations provided by this global watchdog is strongly opposing the UK’s crypto regulatory efforts.
Recently the UK’s MPs discussed regulating cryptocurrencies as a high-risk investment asset and also compared these assets as a gambling tool, instead of a financial asset.
US crypto regulatory approach
Over the last couple of years, the United States Securities and Exchange Commission (SEC) has been trying to regulate cryptocurrencies under the existing traditional financial laws.
In some areas, the SEC body tried to show very strict action against the crypto firms & failed to provide clarity over the regulatory approach.
It seems that the ISOCO body is indirectly supporting the US SEC body over crypto regulation under traditional laws. If it is true, then the US government & SEC body need to follow all the recommendations provided by ISOCO because one sided approach can’t help the SEC as well as the crypto sector move ahead with rules development & tech innovations.
Read also: Hong Kong bans retail Stablecoin Investments
Global securities body suggests use traditional + new rules to regulate crypto
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