The International Organization of Securities Commissions (IOSCO) made an announcement on Tuesday, unveiling a proposal for the world’s first unified regulation of cryptoasset markets. This move comes in response to concerns raised by the collapse of the FTX exchange last year, which highlighted the need for enhanced consumer protection measures.
IOSCO, aiming to address various issues in the financial sector, has presented a set of standards as part of its proposal. The cryptocurrency industry has been advocating for a global regulatory framework, as different jurisdictions currently enforce their own rules, often limited to anti-money laundering checks.
The proposal follows the bankruptcy proceedings initiated by FTX in November 2022, triggered by a liquidity crisis that prompted regulatory intervention worldwide. Jean-Paul Servais, the chair of IOSCO, described the recommended standards as a significant step in addressing the immediate risks to investor protection and market integrity.