IOSCO Sets Out Crypto-Asset Roadmap for 2022-23
The International Organization of Securities Commissions (IOSCO) and the Committee on Payments and Market Infrastructures (CPMI) published a report to assess the implementation the Principles for Financial Market Infrastructures (PFMI) in Turkey. In addition, the Fintech Task Force of IOSCO has set out its crypto-asset roadmap for 2022-23.
The crypto-asset roadmap prioritizes policy-focused work, which is to be divided in two workstreams: the crypto and digital assets (CDA) and the decentralized finance (DeFi). Both workstreams will primarily focus on analyzing and responding to market integrity and investor protection concerns within the cryptoasset space. The working group on crypto and digital assets, led by the UK Financial Conduct Authority (FCA), will focus on issues related to fair, orderly trading, transparent markets, suitability and market manipulation, and safekeeping, custody, and soundness. The work involves consideration of potential taxonomies of various activities, an assessment of the emerging risks, and the different legal or regulatory considerations in each jurisdiction. The CDA working group will aim to deliver a public report with proposed policy recommendations in 2023. As part of the second workstream, the working group on DeFi, led by the U.S. Securities and Exchange Commission (SEC), will develop a shared understanding among IOSCO members of emerging DeFi trends and risks while providing guidance to IOSCO members on how to manage these risks within their regulatory frameworks. The DeFi working group will also examine how IOSCO principles and standards could apply to common activities, products, and services in DeFi. The group will further explore and highlight the links between DeFi, stablecoins, and crypto-asset trading, lending and borrowing platforms, and the interactions of DeFi with broader financial markets. The DeFi working group will also aim to deliver a report with policy recommendations in 2023.
The report on PFMI assessment in Turkey presented the conclusions drawn by the CPMI and IOSCO from a level 2 assessment of whether, and to what degree, the legal, regulatory and oversight framework for financial market infrastructures in Turkey (including rules and regulations, any relevant policy statements, or other forms of implementation) are complete and consistent with the Principles for financial market infrastructures (PFMI). The review found that the frameworks for systemically important payment systems and securities settlement systems are complete and consistent with the PFMI. For the central counterparties (CCPs), the Principles have been implemented in a consistent or broadly consistent manner, except Principle 9 on money settlements and Principle 19 on tiered participation arrangements. For central securities depositories and trade repositories, the review found a number of material gaps in relation to the Principles.
Related Links
- Crypto-Asset Roadmap (PDF)
- Press Release on PFMI Assessment in Turkey
- Report on PFMI Assessment (PDF)
Keywords: International, Europe, Turkey, Banking, Securities, Digital Assets, Decentralized Finance, DeFi, Stablecoins, Regtech, Fintech, PFMI, FMI, Level 2 Assessment, Implementation Monitoring, Systemic Risk, Crypto-Assets, Lending, Lending Marketplace, CPMI, IOSCO
Featured Experts
Blake Coules
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
Previous Article
ECB Publishes Results of Stress Test Exercise on Climate RiskRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
