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Several jurisdictions have made outstanding efforts to release standard crypto regulations to safeguard citizens and their assets.
World securities and future market regulator, the International Organization of Securities Commissions (IOSCO) has introduced a global approach to regulating the crypto market and digital assets. According to the statement made to the press, the proposed recommendation is largely directed toward addressing concerns related to investor protection and market integrity in the digital currency ecosystem.
IOSCO Crypto Regulation Modalities
Also, a consultation period for the policy recommendation has been opened for public comments till July 31st. The regulation contains 18 policy recommendations which cut across 6 key areas including market abuse, conflict of interest, client asset protection, disclosures, and risks associated with crypto.
IOSCO plans to achieve this by dictating how crypto clients should be protected and how crypto trading activities should be conducted to “meet the standards that apply in public markets.” Moreso, Jean-Paul Servais, the Chairman of the international regulator, believes that IOSCO is best suited to get the job done seeing that it has already begun some regulation tasks around the world.
IOSCO is recognized for organizing security regulators in over 130 countries including the Monetary Authority of Singapore (MAS), the United States Securities and Exchange Commission (SEC), and the United Kingdom Financial Conduct Authority (FCA) which are busy regulating “more than 95pc of the world’s securities markets.”
In 2022, the International agency came up with a Fintech Task Force (FTF) responsible for designing regulatory agendas for both the crypto industry and fintech organizations. The FTF was spearheaded by the Singapore regulator, the MAS with 27 board members. The FCA, which is one of the groups attached to the FTF, was commissioned to release recommendations for the crypto asset industry this year.
On the other hand, the SEC was entrusted with working on the Decentralized Finance (DeFi) ecosystem. Another agency known as the Financial Stability Board intends to publish recommendations for stablecoins later this year. The focus on protecting investors in the crypto space heightened last year following the bear market and the sudden collapse of the Bahamian-headquartered FTX exchange.
Global Regulators Intensify Efforts towards Crypto Regulation
Several jurisdictions have made outstanding efforts to release standard crypto regulations to safeguard citizens and their assets. While representing Ajay Seth, the secretary of the Department of Economic Affairs, and Nirmala Sitharaman, the top official in the Indian Finance Ministry, V. Anantha Nageswaran mentioned that crypto regulation would be a priority for G20 under India’s presidency.
Jair Bolsonaro, the Brazilian President has also signed a crypto regulation bill into law which entails that digital asset service providers that intend to do business in the region would first obtain a license from the appropriate agencies. At the same time, anyone who defaults would be penalized and likely face jail time.
Also, Taiwan has increased its hold on the crypto market in its jurisdictions by putting the Financial Supervisory Commission (FSC) in charge as the primary regulatory body for crypto.