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- IOSCO to initiate regulation report consultation in the Q2 of 2023.
- The program of IOSCO is scheduled for 2023-2024.
Regulations of the cryptocurrency sector are much awaited and one of the highly aspirated demands of several regulators worldwide. Such demands are also distinct, where some seek control while others look at the growth of the burgeoning asset class. Regional regulators often make efforts for regulation. International bodies like the World Bank and IMF, etc., also often comment on digital assets and their regulations. IOSCO also has something to bring to resolve the tussle of laws and legislation around crypto.
The International Organization of Securities Commissions (IOSCO) is reported to initiate its cryptocurrency-focused regulation report consultation in the second quarter of 2023. Following the consultation, the next step will include publishing these final recommendations. This was reportedly scheduled to get done by the end of this year.
The work program of IOSCO is scheduled for 2023-2024. The program will have two major focuses with the international agency’s Fintech Task Force Plan for decentralized assets. These two areas will be cryptocurrencies, digital assets, and decentralized finance (DeFi).
Though both the entities, i.e. crypto assets and decentralized finance, are complementary to each other given their similar origination, they require specific treatments. Decentralized finance mainly leverage crypto assets, underlying blockchain technology, and compatibility with smart contracts. While cryptocurrencies emerged as a new asset class that many investors consider a potential investment vehicle. A huge chunk of investors flocking towards the asset class seeks protection and safeguarding by all means.
As reported, IOSCO’s work program will focus mainly on investor protection. The program seeks to support the “development of sustainable and innovative capital markets.” It will ensure the fulfilment of its objective by making better investor protection, keep maintaining market integrity, and minimize potential risks.
Last year, the international securities agency focused on DeFi, stablecoin and financial influencers. It showcased guidelines regarding the treatment of these three entities.
IOSCO suggested that national regulators ensure the availability of regulatory channels for users to complain about illegal and misleading advertisements or marketing. For DeFi, it asked the regulators to keep a more focused view towards the sector with a “granular and holistic understanding” to ensure legislation complementing regulations.
Bank for International Settlements and IOSCO issued the advisory for stablecoin arrangements, including several functions that could be a potential payment method.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
