Global securities regulators are launching a consultation on regulating cryptoasset trading. The move comes amid growing demand for regulators to provide some oversight of the emerging cryptoasset market.
The International Organization of Securities Commissions (IOSCO) published a consultation paper today that sets out the key issues for regulators to consider regarding cryptoasset trading platforms, including safeguarding investors’ assets, conflicts of interest, market access and integrity, and price discovery.
IOSCO, an umbrella group of global regulators, says cryptoassets that are considered securities by regulators should be subject to the same basic regulatory principles as traditional securities.
“Many of the issues related to the regulation of [cryptoasset trading platforms (CTPs)] are common to traditional securities trading venues, but may be heightened by how CTPs are operated,” it notes.
The report, which was prepared by an IOSCO committee headed by the Ontario Securities Commission, includes the results of a survey of regulators around the world. The survey shows how regulators are beginning to deal with the issues posed by regulating the fledgling activity of cryptoasset trading.
In Canada, regulators recently concluded a consultation that seeks feedback on many of the same issues identified in IOSCO’s paper.
In March, the Canadian Securities Administrators and the Investment Industry Regulatory Organization of Canada published a joint consultation that sets out a proposed framework for regulating cryptoasset trading in Canada.
IOSCO is seeking feedback on its report by July 29. The group says it “will continue to monitor the evolution of the markets for cryptoassets to ensure the issues, risks and key considerations identified in this report remain relevant and appropriate.”