IOSCO’s Crypto Policy Aims at Market Manipulation, Conflict of Interest

The International Organization of Securities
Commissions (IOSCO), a global body for securities regulators, has put forward
18 recommendations to regulate the global crypto industry. The recommendations
cover six key areas such as market manipulation, insider trading and fraud
as well as conflict of interest arising from ‘vertical integration’ of various
activities and functions by crypto firms.

Other key areas covered include cross-border
risks and regulatory cooperation, custody and client asset protection,
operational and technological risk, and retail access, suitability and
distribution. The global regulatory body plans to finalize the recommendations by early fourth quarter
2023.

IOSCO announces global crypto regulation recommendations.

📍 Link to the Consultation Report 🔗 https://t.co/Je0UQulWFs
📍 Link to Press Release 🔗 https://t.co/gf9qXuYdwE
📍 Link to the Crypto-Asset Roadmap 2022/2023 🔗 https://t.co/Rcth0NkMmt#CryptoAssets#Regulationpic.twitter.com/aqXPmUmQJN

— IOSCO Press (@IOSCOPress) May 23, 2023

According to IOSCO, many crypto firms adopt a
‘vertically integrated’ business model where they engage in multiple activities
such as exchange
Exchange

An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv

An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
Read this Term trading, brokerage, market-marking, custody and settlements
under ‘one roof.’ The global watchdog believes that this creates conflicts of
interest for the firms.