Global securities watchdog, the International Organization of Securities Commissions (IOSCO), has unveiled policy suggestions for the crypto and digital asset (CDA) markets.
Accordingly, this latest report aims to establish a regulatory framework to address risks associated with centralized crypto asset service providers (CASPs).
The official IOSCO document provided recommendations that outline regulatory expectations. Notably, the agency aims to address critical areas of concern within these markets and mitigate potential risks to investors.
In addition, the CDA recommendations are designed to create a policy foundation worldwide, ensuring that CASPs adhere to business conduct standards similar to those applicable in traditional financial markets.
By aligning with IOSCO's principles, the report identifies key domains requiring attention. The report addresses issues like conflicts of interest, market manipulation, insider trading, and fraud.
In line with this, the IOSCO board, consisting of 35 regulators and top industry executives, highlights global collaboration in shaping regulatory standards for the digital asset landscape.
Specifically, IOSCO Chair Jean-Paul Servais noted the significance of the latest report on investor protection and the fair operation of digital markets envisioned by the G20 and Financial Stability Board (FSB).
This initiative builds on IOSCO's previous reports last year, covering topics such as decentralized finance (DeFi), stablecoins, and influencers.
At the same time, the organization recommends that national regulators must enhance their supervisory capacities. This includes establishing regulatory channels to address consumer complaints related to misleading and illegal promotions.
In addition, the global watchdog emphasized the need for evidence-tracking processes to cope with the fast-paced nature of online information.
IOSCO's move to formulate a global regulatory approach underscores the recognition of the need for standardized frameworks in the crypto markets.