IOSCO Crypto-Asset Trading Platforms

On Feb. 12, IOSCO issued key considerations for regulating platforms.

  • Issued final report on regulating crypto-asset trading platforms (CTPs) entitled Issues, Risks and Regulatory Considerations Relating to Crypto-Asset Trading Platforms.
  • Followed May 2019, IOSCO consultation report on regulating CTPs, see #60612.
  • Sets out key considerations to assist regulatory authorities in addressing issues, risks.
  • Final report draws on responses to consultation, includes summary of survey findings.
  • Key Considerations
  • Key considerations relate to: access to CTPs; safekeeping of participant assets, including custody arrangements; identification and management of conflict of interest.
  • Transparency of operations; market integrity, including the rules governing trading on the CTP, and how those rules are monitored and enforced; price discovery mechanisms; technology, including resiliency and cyber security.
  • Many of the issues related to regulation of CTPs are common to traditional securities trading venues but may be heightened by the business models used by CTPs.
  • 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.
  • Accordingly, the report states that the IOSCO Principles and Methodology provide useful guidance for regulatory authorities considering the identified issues and risks.
  • IOSCO will continue to monitor evolution of markets for crypto-assets to ensure the issues, risks and key considerations identified remain relevant and appropriate.

Regulators IOSCO
Entity Types B/D; Depo; Exch; IA; MSB
Reference Rp FR02/2020, IOSCOPD649, PR IOSCO/MR/03/2020, 2/12/2020; CR02/2019; Cyber
Functions AML; Client Money; Compliance; Legal; Registration; Technology; Trade Reporting; Trading
Countries Global Regulator
Products Cryptocurrency; Custody; Securities
Regions Global
Rule Type Guidance
Rule Date 2/12/2020
Effective Date 2/12/2020
Rule Id 71813
Linked to Rule :60612
Reg. Last Update 2/12/2020
Report Section International

Last substantive update on 02/13/2020