On 12 February 2020, the International Organization of Securities Commissions (IOSCO) published a final report on issues, risks and regulatory considerations relating to crypto-asset trading platforms (CTPs).
The key considerations relate to:
- access to CTPs;
- safekeeping of participant assets, including custody arrangements;
- identification and management of conflicts 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; and
- technology, including resiliency and cyber security.
IOSCO states that many of the issues related to the regulation of CTPs are common to traditional securities trading venues but may be heightened by the business models used by CTPs. It reasons that where a regulatory authority has determined a crypto-asset is a security and falls within its remit, the basic principles or objectives of securities regulation should apply.
IOSCO will continue to monitor the evolution of the markets for crypto-assets to ensure the issues, risks and key considerations identified in this report remain relevant and appropriate.