The International Organization of Securities Commissions has unveiled new policy advice regarding decentralized finance.
In Brief
IOSCO has outlined these guidelines to assist various regulatory bodies and regions in effectively creating markets that adhere to compliance standards.
Made up of regulatory agencies overseeing international securities and futures markets, the International Organization of Securities Commissions (IOSCO) has issued important recommendations focused on decentralized finance. These guidelines are in line with IOSCO's long-standing approach to security regulation and aim to aid various authorities in different jurisdictions to develop compliant markets effectively.
Highlighting the concept that ‘similar activities correspond to similar risks and should be subjected to the same level of oversight,’ IOSCO is striving for uniformity in how crypto asset markets and traditional securities markets are regulated across its member jurisdictions.
The recommendations underline the essential need for strengthened collaboration among regulators to effectively tackle cross-border regulatory challenges and resolve issues related to regulatory arbitrage stemming from the global dimension of these markets.
As decentralized finance continues to gain traction, IOSCO emphasizes the importance of regulatory frameworks to keep pace with this evolving landscape. crypto asset activities conducted by DeFi participants.
Regulatory Parity for DeFi
Recently, IOSCO has been vocal about the necessity for governments to impose regulations on DeFi applications that are equivalent to those governing conventional financial entities, stressing the importance of adherence to established financial regulations. financial landscape .
The policy guidance issued by IOSCO concerning DeFi is a significant move towards achieving regulatory consistency, calling on global governing bodies to harmonize responsibilities within this decentralized space with the established norms of traditional finance, especially as DeFi proliferates.
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Disclaimer
In line with the Trust Project guidelines Alisa, a passionate journalist at Cryptocurrencylistings, focuses on cryptocurrency, zero-knowledge proofs, investments, and the broad expanse of Web3. With her attention finely tuned to emerging trends and technology, she offers in-depth reports that both inform and engage readers navigating the dynamic world of digital finance.
