IOSCO published a consultation on issues, risks, and regulatory considerations related to Crypto-Asset Trading Platforms. The report sets out key considerations that are intended to assist regulatory authorities in evaluating Crypto-Asset Trading Platforms within the context of their regulatory frameworks. The comment period for this consultation ends on July 29, 2019.
The primary topics covered in the report include access to Crypto-Asset Trading Platforms, safeguarding participant assets, conflicts of interest, operations of Crypto-Asset Trading Platforms, market integrity, price discovery, and technology. The consultation report outlines risks and issues that have been identified so far and sets out the key considerations that may be relevant for regulatory authorities that are considering the potentially novel and unique issues related to the regulation of Crypto-Asset Trading Platforms. The consultation report focuses on trading of crypto-assets on Crypto-Asset Trading Platforms when a regulatory authority already determined that it has the legal authority to regulate those assets or the specific activity involving those assets rather than analyzing the criteria that is used by regulatory authorities to determine whether a crypto-asset falls within its remit.
Many of the issues related to the regulation of Crypto-Asset Trading Platforms are common to traditional securities trading venues, but may be heightened by how Crypto-Asset Trading Platforms are operated. 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. The report, therefore, sets out that the IOSCO principles and methodology provide useful guidance for regulatory authorities considering the identified issues and risks.
Annex A to the report contains information that many IOSCO members have provided about what they have published with respect to their regulatory framework applicable to the Crypto-Asset Trading Platforms that are within their jurisdiction. In preparing this report, IOSCO also conducted a survey on the Crypto-Asset Trading Platforms regulatory approaches that are currently applied or are being considered in member jurisdictions. Annex B of the report includes a summary of the findings of this survey.
Comment Due Date: July 29, 2019
Keywords: International, Securities, Crypto Assets, Crypto Asset Trading Platform, Securities Regulations, Cryptocurrency, IOSCO
Previous ArticleFSB Reports Progress on Work on Cyber Incident Response and Recovery
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting