International Organization of Securities Commissions Releases Policy Recommendations for DeFi
In Brief
IOSCO issued policy recommendations for DeFi to guide relevant authorities and jurisdictions effectively establish compliant markets.
The International Organization of Securities Commissions (IOSCO), an association of organizations regulating global securities and futures markets, issued policy recommendations for decentralized finance (DeFi).
Aligned with IOSCO’s established approach to securities regulation policy, these recommendations aim to guide relevant authorities and jurisdictions in establishing compliant markets effectively.
Emphasizing the principle of “same activities, same risks, same supervision/supervision outcomes,” IOSCO seeks consistency in the regulatory approach to crypto asset markets and securities markets across its jurisdictions, seeking to establish compliant markets in the most effective manner.
The recommendations stress the importance of enhanced cooperation between regulators to coordinate and respond to cross-border challenges in enforcement and regulation and to address regulatory arbitrage issues arising from the cross-border nature of global crypto asset activities conducted by DeFi participants.
Regulatory Parity for DeFi
As the adoption of DeFi grows, IOSCO continues to underscore the necessity for regulatory oversight in this evolving financial landscape.
In a recent development, IOSCO has advocated for governments to regulate DeFi applications on par with traditional financial market players, emphasizing the need for responsibilities and obligations in line with established regulations in traditional finance (TradFi).
IOSCO’s policy recommendations for DeFi signify a crucial step toward regulatory coherence, urging global authorities to align responsibilities and obligations in this decentralized landscape with established standards in traditional finance, as the adoption of DeFi continues to influence the financial industry.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
