Global security regulation group the International Organization of Securities Commissions (IOSCO) has issued its “roadmap” for dealing with cryptocurrencies.
The roadmap comes out of the FinTech task force IOSCO established earlier this year, and is designed to “prioritize policy-focused work on crypto-asset markets and activities,” the organization said Thursday (July 7).
The IOSCO said two working groups will publish reports with recommendations on decentralized finance (DeFi) and crypto-assets. The U.S. Securities and Exchange Commission will oversee the DeFi project, with the U.K. Financial Conduct Authority handling crypto duties. The reports are due at the end of the year.
Learn more: DeFi’s Risks ‘Quickly Evolving’ to Threaten Traditional Markets, Securities Regulators Warn
The working groups will focus on market integrity and investor protection, and offer guidance on how regulatory frameworks for securities could be applied to digital assets.
“The need to address these concerns is evident from many events affecting the crypto asset space, such as the recent Terra/Luna episode and ensuing market turmoil, resulting in significant losses and risks to investors due to inadequate protection and safeguards,” the IOSCO report said.
See also: Financial Stability Board to Propose Crypto Regulations in October
The group, which includes 95% of the world’s securities regulators, announced the launch of the task force in March, citing rising risks posed by DeFi.
The IOSCO is embarking on this project as a number of regulators around the world look to create more oversight for cryptocurrencies.
For example, the Financial Stability Board announced Monday (July 11) it will propose crypto rules in October to boost regulations in the sector.
The board, based in Switzerland, monitors the global financial system, and although in this case, it aims to create local regulations, it is also calling for oversight of cryptocurrency and digital assets that covers all parts of the world.
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