IOSCO requests feedback on key considerations for regulating crypto-asset trading platforms

The Board of the International Organisation of Securi t i e s Commissions (IOSCO) is seeking comments on a consultation paper that describes the issues associated with crypto-asset trading platforms (CTPS) and sets forth key considerations to assist regulatory authorities in addressing these issues.

The development of crypto-assets is an important area of interest for regulatory authorities around the world. Accordingly, IOSCO has published the consultation report titled Issues, Risks and Regulatory Considerations Relating to Crypto-asset Trading Platforms, which describes the risks and issues that IOSCO has identified regarding CTPS.

The report sets out key considerations that are intended to assist regulatory authorities in evaluating CTPS within the context of their regulatory frameworks. The primary topics covered include: Access to CTPS; safeguarding participant assets; conflicts of interest ; operations of CTPS; market integrity; price discovery; and technology.

Many of the issues related to the regulation of CTPS are common to traditional securities trading venues, but may be heightened by

how CTPS are operated. Where a regulatory authority has determined that a crypto-asset is a security and falls within its remit, the basic principles or objectives of securities regulation should apply.

The report, therefore, sets out that the IOSCO Principles and Methodology provide useful guidance for regulatory authorities considering the identified issues and risks.

IOSCO will continue to monitor the evolution of the markets for crypto-assets to ensure the issues; risks and key considerations identified in this report remain relevant and appropriate. This approach is in line with the G20´s 2018 communique that called on international standard setting bodies “to continue their monitoring of crypto-assets and their risks, according to their respective mandates, and assess multilateral responses as needed.”

In preparing this Consultation Report, IOSCO conducted a survey of the regulatory approaches to CTPS that are currently applied or are being considered in member jurisdictions. The report includes a summary of the findings of this survey.