The International Organization of Securities Commissions (IOSCO) will initiate a consultation for its regulation report on crypto assets. It is expected to share its vision of stablecoin arrangements, decentralized finance, and “finfluencers.“
The dates are included in IOSCO’s work timetable for 2023 and 2024. The plan of IOSCO’s Fintech Task Force includes two main workflows pertaining to decentralized assets. The first discusses Crypto and Digital Assets (CDA), whereas the second discusses decentralized finance (DeFi). The DeFi consultation will begin in the third quarter of 2023.
According to the work program text, IOSCO will focus on investor protection in both sectors of the digital market:
“Through the outcomes of its work, IOSCO seeks to support the development of sustainable and innovative capital markets, while enhancing investor protection, maintaining market integrity, and reducing systemic risk.”
The Organization has already published its assessments on DeFi, stablecoins, and influencers in 2022. The set of supervisory capabilities that IOSCO recommends national regulators acquire consists of regulatory channels to report consumer complaints for deceptive and unlawful promotions, as well as evidence-tracking processes to accommodate the rapidly changing nature of online information.
Regarding DeFi, IOSCO urged national regulators to gain “a granular and holistic comprehension of the DeFi market,” which could improve their ability to draft legislation that is pertinent.
The report on stablecoins for 2022 was delivered by IOSCO and the Bank for International Settlements (BIS). It defines the stablecoin arrangement, which “combines a variety of functions to provide an instrument that is intended to be used as a payment method and/or a store of value.”
IOSCO is an association of regulators of securities and futures. Its board consists of 35 senior executives from regulatory agencies, including the heads of the U.S. Commodity Futures Trading Commission (CFTC), the U.S. Securities and Exchange Commission (SEC), and the United Kingdom Financial Conduct Authority (FCA), among others.
