Crypto industry reacts to a series of moves toward global regulation

The International Organization of Securities Commissions (IOSCO) is an association of 130 agencies responsible for overseeing securities and futures. It recently launched a consultation process that is expected to conclude by the end of July. In fact, it published 18 policy recommendations for consultation on May 23 for the management of crypto markets. Here’s what they are.

The crypto industry takes a mixed view of the new measures

IOSCO is proposing a set of standards and measures for global regulation of the crypto market, which is progressing despite this. The recommendations include managing conflicts of interest within the crypto space and cross-border regulatory cooperation. They also take into account the custody of cryptos and the treatment and protection of retail investors. The watchdog also addressed operational risks, insider trading, market manipulation and fraud.

That being said, IOSCO explained, “One of IOSCO’s goals is to promote greater consistency with respect to how IOSCO members approach the regulation and oversight of crypto-asset activities, given the cross-border nature of the markets, the risks of regulatory arbitrage and the significant risk of harm to which retail investors continue to be exposed.”

Several crypto industry players have reacted in relation to IOSCO’s proposed measures. For example, Mikkel Morch, president and non-executive director of the ARK36 fund, said, “While the proposed standards hold the promise of enhancing investor protection, it is important to strike the right balance between regulation and innovation to foster continued growth and development in this dynamic industry.”

Meanwhile, Bradley Duke, co-CEO of European crypto firm ETC Group, welcomed IOSCO’s initiative. He said it is “definitely a step in the right direction.” He suggested that “any well-considered regulation or digital assets guidance that increases investor protections” is welcome.

The release of the IOSCO measures comes while crypto companies in the U.S. are facing a massive crackdown. At the same time, companies are struggling with a lack of regulatory clarity in the country. In addition, U.S. regulators like the SEC are opposing the rise of several crypto products. In this regard, the SEC previously blocked the Spot Bitcoin ETF, sparking outrage within the community.