(BlockBar) The International Organization of Securities Commissions (IOSCO) which is a global securities regulation standard setter has published a consultation paper on regulating crypto asset trading platforms (CTPs). The paper was published in an official news release on May 28 by IOSCO.
It is worth noting that IOSCO had established an Initial Coin Offering Consultation Network to review experiences and concerns related to the ICO market, in January 2018. The organization had addressed the challenges of the emerging asset class in its annual conference last year and impacted national securities regulators’ evolving approaches.
Membership of IOSCO regulates over 95% of the world’s securities markets in more than 115 jurisdictions, according to the news published. The activities of the organization aim to develop and promote abidance to an internationally recognized and consistent standards for regulatory oversight, and enforcement within the global securities sector.
The new consultation paper “Issues, Risks, and Regulatory Considerations Relating to Crypto-Asset Trading Platforms” seeks feedback from the public on a set of risks, issues, and other central considerations that have been identified by IOSCO with regards to CTPs. It is to be noted that all such comments must be submitted to the paper by July 29 2019.
These central considerations outlined in the report are the following: access to CTPs, CTP operations, safeguarding assets, market integrity, price integrity, conflicts of interest and technology.
IOSCO asserts that its approach aligns with a G20 2018 communique “to continue their monitoring of crypto-assets and their risks, according to their respective mandates, and assess multilateral responses as needed.”
As a guiding principle, a given regulatory authority has deemed that a crypto asset qualifies as a security and thus falls within its regulatory purview, the asset should fall subject to the traditional frameworks and objectives of existing securities laws. The news release states the above.
Nonetheless IOSCO recognizes that the regulation of CTPs may present potentially novel and unique issues for regulators to tackle, according to the reports. It then proposes that its detailed analysis of considerations may serve relevant regulatory agencies as a baseline as they endeavor to construct their approach to the new sector.
