On Tuesday, the international oversight group IOSCO submitted the first proposal for global guidelines for regulating cryptocurrencies and other digital markets.
This comes after the collapse of cryptocurrency exchange FTX last year, which led to concerns about customer protection. Billions of kroner have disappeared, and it is not clear where the deposits have gone.
The cryptocurrency industry often only has to deal with anti-money laundering rules. It has itself endorsed global guidelines for regulation, having submitted numerous schemes around the world.
The proposed regulations address dealing with conflicts of interest, market manipulation, cross-border regulatory cooperation, ownership of crypto assets, operational risks, and customer treatment. A total of 18 measures are aimed at introducing solid security arrangements from the regular markets.
The proposal is “a turning point towards dealing with very real and immediate threats to investor protection and market integrity,” says Jean-Paul Servais, who heads the International Organization of Securities Commissions (IOSCO).
The umbrella organization includes a total of 130 supervisory bodies, including the American SEC, British FCA and German BaFin. The aim is to finalize the guidelines by the end of the year, and member bodies are expected to adopt them quickly, according to IOSCO.
Earlier in May, the European Union introduced what were the world’s first comprehensive guidelines for crypto regulation.
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