IOSCO Reveals Global Guidelines For Regulation of Crypto And Digital Markets

The International Organisation of Securities Commissions (IOSCO) revealed on Tuesday the first global approach to regulating cryptoasset and digital markets, relying on lessons learned from the collapse of the FTX exchange last year, which fueled consumer worries about consumer safety.

As different governments follow their own standards, the industry, which normally simply has to comply with anti-money laundering procedures, has been asking for a worldwide approach to regulation.

The steps come after crypto exchange FTX filed for bankruptcy in the United States last November, following a liquidity crisis that forced global regulators to intervene.

The suggestions issued on Tuesday represent a "watershed moment in addressing the very clear and proximate risks to investor protection and market integrity," according to Jean-Paul Servais, chair of the International Organisation of Securities Commissions (IOSCO).

The suggested guidelines address dealing with conflicts of interest, market manipulation, cross-border regulatory cooperation, cryptoasset custody, operational hazards, and retail customer service.

The 18 planned procedures will use long-established safeguards from mainstream markets to eliminate conflicts of interest between the various aspects of a cryptocurrency transaction.

The watchdog said it hoped to complete the standards by the end of the year and that its 130 members around the world would use them to quickly fill gaps in national rulebooks.

IOSCO, an umbrella group of regulators such as the U.S. Securities and Exchange Commission, Japan's Financial Services Agency, Britain's Financial Conduct Authority and Germany's BaFin, is canvassing public opinion on the regulations.