Why International Organization Securities Commission (IOSCO) Says Regulators Should Block Firms From Combining Crypto Functions

The International Organization of Securities Commission in a new release rule for crypto regulations all around the world. The IOSCO's point out different rules for cryptocurrency regulators on how to regulate crypto industry globally.

The IOSCO is a global policy group of regulators that issue a clear and look on how market should be protected. However the organization is known for their strong policy across 130 crypto jurisdiction countries and they oversee 95% of the world securities market. The regulatory forum develop crypto policy FTF around last year to regulate the market and avoid crypto firms bankruptcy.

Advising crypto regulators across the global to prohibit crypto firms from combining crypto function will that sounds good for crypto companies. Honestly I don't think there should be a separate legal entity for crypto companies offering different programs.

What IOSCO trying to advice regulators is that they should not allow crypto companies to perform certain function in single entity, something like prohibit running exchanges, businesses, trading and be a custodian under one legal entity. This recommendation is due to FTX conflicts that shakes the whole crypto industry, as well know FTX is the largest crypto exchange after Binance and Coinbase. FTX shortfall in liquidity which result in FTX misused it's customers funds and have illegal transactions with its sister company Alameda Research, however to stop such conflict might be the reasons IOSCO recommend such policy to crypto regulators globally.

I was still thinking of this 18 different policy recommendation from International Organization of Securities Commission will hold and how this will favor both crypto companies and the users. Although this recommendation will reduce cross-border risks, it will integrate a policy on insider trading, market manipulation and fraud, but will this be the solution to unclear regulations?

Well, let look into the 18 recommendation from the IOSCO;

R1

R2

R3

R4

R5

R6

R7

R8

R9

R10

R11

R12

R13

R14

R15

R16

R17

R18

All these are the policy recommendation for regulators across the world to use to regulate crypto.

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Recommendation screenshot from IOSCO release publication. You can read the copies of publications on:
www.iosco.org