IOSCO Unveils DeFi Regulatory Blueprint
The International Organization of Securities Commissions (IOSCO) has released nine policy recommendations to improve regulatory oversight in decentralized finance (DeFi).
These recommendations emphasize the importance of consistency and adherence to laws, with Rule 7 being the core recommendation.
The guidance outlines various tactics for DeFi and other market participants to circumvent regulatory obligations, advising regulators to scrutinize their existing powers and resources.
IOSCO also aims to foster uniformity in the regulatory approach towards crypto-asset and traditional securities markets, consistently applying the same activity, risk, and regulation across these domains.
The report refutes the common misconception that decentralization renders entities immune to regulation, stating that “identify responsible persons.”
The recommendations will shift IOSCO’s focus towards proactive monitoring, regulatory capacity building, and technical assistance to its member authorities.
IOSCO currently has over 130 regulatory authorities overseeing 95% of the world’s financial markets.
(With inputs from Shikha Singh)
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