IOSCO Releases Document on Cryptocurrency Oversight
Date: 2023-11-20 Author: Dima Zakharov Categories: BUSINESS
IOSCO's Recommendations for Crypto Regulation
IOSCO, a global developer of standards for monitoring and controlling securities markets, initiated consultations on regulations for this technological industry earlier this year. These guidelines aim to address concerns such as market abuse, manipulation, insider trading, conflicts of interest, asset protection, disclosure, cross-border risks, and operational and technological risks linked to digital currencies.
The consolidation of regulatory rules intends to create a global framework to handle critical situations generated by service providers, shaping a more secure environment for market participants.
IOSCO's Role in Securities Regulation
IOSCO stands as a key international political forum for securities regulators, covering over 95% of global markets across approximately 130 jurisdictions. Comprising 35 members, IOSCO's board is headed by Jean-Paul Servais, Chairman of the Financial Services and Markets Authority (FSMA).
Global Concerns and Regulatory Response
Over the past year, the issue of cryptocurrency regulation has gained significant prominence. Events like the Terra (LUNA) crash, the impact of Three Arrows Capital hedge fund, FTX exchange bankruptcy, and several other company collapses sparked global apprehension about safeguarding market participants' interests.
Regulators worldwide have actively sought to establish a unified regulatory framework for this sector to address these growing concerns.
As of November 17, 2023, the total cryptocurrency market capitalization stood at $1.42 trillion, with daily trading volumes at $71.44 billion. Bitcoin (BTC) dominance remained around 51%, with its value at $36,303, experiencing a nearly 3% decline over the past 24 hours. The combined asset supply reached $709.52 billion.
