By Dominion Ndubuisi
In a landmark move, the International Organization of Securities Commissions (IOSCO) has unveiled a comprehensive set of policy recommendations, aimed at harmonizing the regulatory landscape for digital assets. This 18-step guideline promises to align international standards, bolstering market integrity and fortifying investor protection in the ever-evolving crypto sphere.

Established in 1983, IOSCO is the preeminent body of securities regulators, with its fingers on the pulse of over 95% of the world's securities markets across more than 130 jurisdictions. This new "principles-based" and "outcomes-focused" framework is a decisive step toward mitigating the risks and enhancing the transparency that's critical in the digital asset space.

Key to these recommendations is a call for uniform regulatory outcomes, echoing the SEC's philosophy of equalizing the playing field across different activities and risks. IOSCO is tackling issues head-on, from operational risks and market manipulation to the complexities of cross-border digital asset activities. A significant spotlight is thrown on stablecoins, recognizing their growing prominence and unique challenges.

The guidelines traverse essential domains such as conflict of interest, market integrity, custody, and asset protection, each meticulously crafted to fit the intricate mechanisms of the crypto market. IOSCO's move is not just prescriptive but adaptive, allowing for tailored implementation across diverse regulatory environments.

By setting these expectations, IOSCO is not only safeguarding the interests of individual investors but is also ensuring the systemic resilience of the digital asset market. As the crypto market stands at the cusp of a regulatory renaissance, IOSCO's recommendations are poised to be the cornerstone of a stable, fair, and efficient global digital economy.

IOSCO’s 18 recommendations for digital assets.

Overarching Recommendation Addressed to All Regulators: Common Standards of Regulatory Outcomes.
Organizational Governance: Addressing conflicts of interest in vertically integrated CASP business models.
Disclosure of Role, Capacity, and Trading Conflicts: Requiring CASPs to accurately disclose each role and capacity in which they act.
Order Handling: Ensuring CASPs handle client orders fairly and equitably.
Trade Disclosures: Transparency requirements for CASPs operating as market operators or trading intermediaries.
Admission to Trading: Setting standards for listing and delisting crypto-assets on CASP platforms.
Management of Primary Markets Conflicts: Addressing conflicts of interest in the primary markets for crypto-assets.
Fraud and Market Abuse: Systems and controls to identify and monitor for manipulative market practices.
Market Surveillance: Effective systems for market surveillance to prevent market manipulation.
Management of Material Non-Public Information: Preventing the misuse of insider information in crypto markets.
Enhanced Regulatory Co-operation: Promoting international regulatory cooperation in crypto-asset oversight.
Overarching Custody Recommendation: Safeguarding client monies and assets held by CASPs.
Segregation and Handling of Client Monies and Assets: Proper handling and protection of client assets.
Disclosure of Custody and Safekeeping Arrangements: Clear disclosures regarding the custody of client assets.
Client Asset Reconciliation and Independent Assurance: Ensuring the reconciliation and independent assurance of client assets.
Securing Client Money and Assets: Implementing controls for the security of client assets.
Management and Disclosure of Operational and Technological Risks: Addressing operational and technological risks at CASPs.
Retail Client Appropriateness and Disclosure: Assessing the suitability of retail clients for crypto-asset investment and ensuring proper disclosures.