According to a report by CoinDesk, the International Organization of Securities Commissions (IOSCO), an international standard-setting body for securities market regulation, has rejected the cryptocurrency industry’s request to establish a specific framework for stablecoins but supports the requirement to enhance accountability for so-called financial influencers.
Following the end of a consultation period that began in May, IOSCO released its final report on cryptocurrency and digital asset market policy recommendations on Friday, aiming to assist its members in coordinating global regulatory responses to the risks posed by Crypto Asset Service Providers (CASP). These risks include market abuse, conflicts of interest, customer asset protection, and disclosure.
Tuang Lee Lim, Chair of the IOSCO Financial Stability Board, stated in a statement that the report highlighted the call from many respondents to strengthen accountability for financial influencers. IOSCO emphasized the importance of regulatory authorities collaborating with relevant entities to ensure accurate disclosure of cryptocurrency promotional activities, products, services, and associated risks. CASPs should also disclose any commercial involvement with individuals providing investment advice on the cryptocurrencies traded on their platforms.
Some feedback respondents, including several blockchain industry associations, advocated for the establishment of a specific framework for stablecoins, arguing that the current requirements are too burdensome. However, IOSCO rejected this position and reiterated that its rules will apply to stablecoins.
IOSCO is an international policy forum for securities regulators, with its members overseeing over 95% of the securities markets in approximately 130 jurisdictions worldwide.