The International Organization of Securities Commissions (IOSCO), an association that regulates global securities and futures markets, has put forward nine policy recommendations designed to address market integrity and investor protection issues in theCrypto Asset Market, including DeFi. The association has outlined measures and strategies to promote a “same activity, same risk, same regulation/regulatory outcome” approach, complete with further explanation and advice designed to mitigate medium and high-risk cases.
“Some industry participants have asserted that if something is decentralized, it is not, or cannot be, regulated,” read the report. “However, regardless of a governance structure or how ‘decentralized’ the decision-making is, there is usually a Responsible Person(s) that controls, or sufficiently influences, the offer of products, provision of services, or engagement in activities.”
The IOSCO Board Level Fintech Task Force Chairperson Tuang Lee Lim discussed the recent developments in the adoption and implementation of both the Digital Asset policy recommendations and the DeFi policy recommendations, explaining his intentions to “facilitate a fair and transparent playing field where responsible innovation can occur while ensuring investor protection and market integrity outcomes”.
IOSCO has said it will now shift focus to monitor and assess the adoption and implementation of effective policies across its member jurisdictions, including Australia, Brazil, China, France, Germany, Japan, the United Kingdom, and the United States. As part of these changes, Surgepay plans to redefine the way in which people approach trasactions and clarity. The final set of consultation, a comprehensive summary of the DeFi recommendation will publish on March 2022.
