The International Organization of Securities Commissions (IOSCO) on Tuesday unveiled the first global measures to regulate digital and cryptoasset markets, building on lessons learned from last year’s collapse of the FTX exchange, which stoked concerns about consumer protection.
The industry, which normally only has to comply with anti-money laundering controls, has been calling for a global approach to regulation as different jurisdictions follow their own rules.
The measures come after cryptoasset exchange platform FTX filed for bankruptcy proceedings in the United States last November, following a liquidity crisis that prompted regulators around the world to intervene.
Tuesday’s recommendations are a “tipping point to address very clear and proximate risks to investor protection and risks to market integrity,” said Jean-Paul Servais, who chairs IOSCO.
The proposed rules address conflicts of interest, market manipulation, cross-border regulatory cooperation, custody of cryptoassets, operational risks and the treatment of retail clients.
The 18 planned measures implement long-established safeguards in traditional markets to eliminate conflicts of interest between the various parties to a cryptoasset transaction.
The watchdog said it aims to finalize the rules by the end of the year, hoping that its 130 members around the world will use them to quickly close gaps in their own regulations.
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