According to a report by CoinDesk, the International Organization of Securities Commissions (IOSCO), the international standard-setting body for securities market regulation, has rejected the cryptocurrency industry’s request for a dedicated regulatory framework for stablecoins. However, they support the demand for enhanced accountability for so-called financial influencers.
After the consultation period that began in May, IOSCO released its final report on cryptocurrency and digital asset market policy recommendations on Friday, aiming to help its members establish coordinated global regulatory measures for cryptocurrency asset service providers (CASP) and the risks they pose. The organization mentioned from the beginning that these risks include market manipulation, conflicts of interest, customer asset protection, and disclosure.
Tuang Lee Lim, Chair of the IOSCO Committee on the Regulation of Market Intermediaries, stated in a statement that many respondents called for stronger accountability for financial influencers. In response, IOSCO stated that regulatory authorities should collaborate with other relevant institutions to ensure accurate disclosure of the products and services offered and the associated risks in cryptocurrency promotion activities. CASPs should also disclose any business involvement with individuals providing investment advice on the cryptocurrencies traded on their platforms.
Some feedback from industry associations, including blockchain industry associations, advocated for a dedicated regulatory framework for stablecoins, claiming that the current requirements are too burdensome. IOSCO rejected this position and reiterated that its rules will apply to stablecoins.
IOSCO is an international policy forum for securities regulatory authorities, with its members overseeing over 95% of the securities markets in approximately 130 jurisdictions worldwide.
