IOSCO, the umbrella international policy forum for securities regulators worldwide, has announced that it has issued for consultation nine policy recommendations to address market integrity and investor protection concerns arising from Decentralised Finance (DeFi).
The Recommendations cover six key areas, consistent with the IOSCO Objectives and Principles for Securities Regulation and relevant supporting IOSCO standards, recommendations, and good practices:
(1) Understanding DeFi Arrangements and Structures,
(2) Achieving Common Standards of Regulatory Outcomes,
(3) Identification and Management of Key Risks,
(4) Clear, Accurate and Comprehensive Disclosures,
(5) Enforcement of Applicable Laws, and
(6) Cross-Border Cooperation.
