The International Organization of Securities Commissions (“IOSCO”) has published a consultation report on its Policy Recommendations for Decentralised Finance (“DeFi”).

The consultation has been released by IOSCO with the aim of finalising its policy recommendations to address market integrity and investor protection issues in DeFi.

The recommendations open to consultation are:

  • Analyse DeFi products, services, arrangements, and activities to assess regulatory responses;
  • Identify responsible persons;
  • Achieve common standards of regulatory outcomes;
  • Require identification and addressing of conflicts of interest;
  • Require identification and addressing of material risks, including operational and technology risks;
  • Require clear, accurate and comprehensive disclosures;
  • Enforce applicable laws;
  • Promote cross-border cooperation and information sharing; and
  • Understand and assess interconnections among the DeFi market, the broader crypto-asset market, and traditional financial markets.

Firms can provide feedback to the consultation report by 19 October 2023.

As regulatory regimes tailored to the unique landscape of cryptocurrency develop around the world, Plenitude’s Digital Assets Practice can help you understand their implications for your project. Visit our website for more information.

https://www.iosco.org/library/pubdocs/pdf/IOSCOPD744.pdf

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