IOSCO seeks consultation on crypto-asset regulation

The International Organization of Securities Commission (IOSCO) is seeking feedback on a consultation paper published on Monday on regulating crypto-asset trading platforms (CTPs).

The paper, entitled “Issues, Risks, and Regulatory Considerations Relating to Crypto-Asset Trading Platforms,” tackles the identified risks and issues of CTPs, which include access to trading platforms, safeguarding investors’ assets, conflicts of interest, operations, market integrity, price discovery, and technology.

In its media release, IOSCO, which regulates over 95% of the world’s securities markets in more than 115 jurisdictions, said that crypto-assets that are considered as securities should follow the same basic regulatory principles of conventional securities.

“Many of the issues related to the regulation of CTPs are common to traditional securities trading venues, but may be heightened by how CTPs are operated,” IOSCO stated.

The report also includes the results of a survey on the different approaches to the regulation of CTP among jurisdictions and highlighted the various methods to address the same issues and risks related to CTP.

IOSCO said it will continue to surveil the CTP market to ensure that the identified issues, risks, and key considerations remain relevant and appropriate.

Meanwhile, the European Central Bank (ECB) said that crypto-assets currently do not have any risks or threat to Europe’s economy. The bank formed an advisory committee to investigate the implications and risks of cryptocurrencies and crypto-assets in the areas of monetary policy, financial stability, and financial market infrastructures.