Regulatory Series on Cryptocurrencies: IOSCO, the international regulator perceives cryptocurrency as security and needs clarity in defining

It is quite known that Fintech/Cryptocurrency/Blockchain has been one of the swiftly growing sectors. There has been a rapid surge of late in the number of FinTech start-ups across the globe over the recent years and the sub-sectors encompassed have become more diverse. 

There have been over 2,000 various coins in existence till date, all carry their unique features, utility, and communities, while there are multitudes of distinctive blockchains based on the targeted areas. Fintech/Blockchain gamut symbolizes the progressive enterprises that leverage cutting edge technology to bring-in friendly financial products and solutions that are quite far more agile and pioneering compared to traditional financial institutions.

This plethora of key factors that drive the innovation in the crypto sphere. But on the flip side, the factors that hinder the prospect of this industry is the regulatory framework and the widespread adoption, as the lack of unified standards leads to the continued apprehensions among the crypto-investor community.

There comes the role of International Organization of Securities Commissions (IOSCO) who has established a consultation on “Crypto-asset Trading Platforms (CTPs).” Crypto exchanges have been established across the globe to ranging the level of regulatory compliance depending on the jurisdiction.

Recently, IOSCO came up with a report where they appear to be advising regulators on their approach to “crypto asset trading platforms” (CTPs). The report gives advice as to how any crypto-assets considered as securities and they should abide by the universal regulatory principles as conventional securities but does not provide guidance on how to define crypto assets as securities in the first place.

The report which seems to be based on a survey of existing regulatory approaches in member jurisdictions is titled Issues, Risks and Regulatory Considerations Relating to Crypto-Asset Trading Platforms. 

As the crypto industry lifecycle appears to be evolving, the pertinent authorities are likely to turn to the IOSCO for better clarity in guidance. Where their report follows a call at the 2018 G20 statement for regulatory bodies “to continue their monitoring of crypto assets and their risks, according to their respective mandates, and assess multilateral responses as needed.” Courtesy: BNC

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards -38 levels (which is mildly bearish), while hourly USD spot index was at -58 (bearish) while articulating (at 12:07 GMT). 

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