The International Organization of Securities Commission, also known as the IOSCO has just published a consultation letter where it’s requesting feedback from market participants, whether or not crypto trading platforms should be regulated under its jurisdiction.
The IOSCO is a participant in more than 115 countries and is the regulator of at least 95% of the world’s securities markets. Therefore, having cryptocurrencies under its wing would be a great benefit for the whole market. Furthermore, were the IOSCO regulate crypto trading platforms, it would be much better to pitch the idea to countries who are either banning or refraining from cryptos.
The organization requires some feedback from the community about the potential risks and issues it has discovered in the crypto trading industry. More specifically, it needs feedback about what regular traders have encountered over the years of participating in the crypto market, that has not been documented by the IOSCO.
Currently, the most important point that the organization requires information on is the conflict of interest with cryptos and government, the safeguarding issues of assets and the CTP operations, as well as market integrity and resistance to manual manipulation.
Even though the IOSCO’s main goal is to introduce a global crypto regulatory framework as a method of comparing existing legislative drafts, it also suggests that making such law would have its issues with independant regulators. One of the main issues is probably going to be the differing ideas and stance towards the blockchain technology.
However, the crypto community is hopeful that common grounds can be met.