The International Organization of Securities Commissions (IOSCO) released a report on policy recommendations on decentralized finance (DeFi). The report aims to address market integrity and investor protection issues in the DeFi sector and support relevant jurisdictions in establishing compliant markets.
IOSCO emphasizes the cross-border nature of the crypto asset market and the significant risks it may pose to retail investors, and its goal is to promote consistency in the regulation of the crypto asset market and securities markets within IOSCO member countries. This policy recommendation follows the principle of “same activities, same risks, same supervisory/supervisory consequences”.
The report also highlights the importance of strengthening cooperation among regulators to better coordinate and respond to cross-border challenges in law enforcement and regulation, and to address regulatory arbitrage issues arising from the cross-border nature of global crypto asset activities conducted by DeFi players. .