International Securities Watchdog Proposes First Set of Global Rules for the Crypto Industry

International securities watchdog IOSCO unveiled the world’s first approach to regulating crypto-asset and digital markets on Tuesday, drawing lessons from last year’s crash of the FTX stock exchange that fueled concerns about consumer protection.

The industry, which usually only has to comply with anti-money laundering controls, has called for a global approach to regulation as different jurisdictions follow their own rules.

The moves come after crypto exchange FTX began bankruptcy proceedings in the United States last November following a liquidity crisis that prompted the intervention of regulators around the world.

Tuesday’s recommendations are “a turning point in taking into account the very clear and immediate risks to investor protection and risks to market integrity”, said Jean-Paul Servais, who chairs the International Organization of Commissions. of values ​​(IOSCO).

The proposed standards cover the management of conflicts of interest, market manipulation, cross-border regulatory cooperation, custody of crypto-assets, operational risks and treatment of retail clients.

The 18 planned measures apply long-established safeguards in traditional markets to eliminate conflicts of interest between different parties in a crypto transaction.

The watchdog said it aimed to finalize the standards by the end of the year and expected its 130 members around the world to use them to fill gaps in their regulations quickly. The Financial Services Agency, Britain’s Financial Conduct Authority and Germany’s BaFin are surveying public opinion on regulation.

The step follows the European Union’s finalization this month of the world’s first set of comprehensive rules, pressuring Britain, the United States and other countries to develop their own standards. .

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