Skip to main content

Securities Regulators’ Association Calls for the Identification of Individuals Who Exercise Control Over Defi Platforms

Securities Regulators' Association Calls for the Identification of Individuals Who Exercise Control Over Defi Platforms

The International Organization of Securities Commissions (IOSCO) has urged regulators seeking to understand decentralized finance (defi) arrangements to identify individuals who “exercise control or sufficient influence at the enterprise level.” The identification of such individuals potentially enables regulators to pinpoint “existing or potential regulatory touchpoints.”

Understanding the Defi Arrangement at the ‘Economic Reality’ Level

The International Organization of Securities Commissions (IOSCO) has urged its members seeking to regulate decentralized finance entities to first “understand the defi arrangement at the economic reality or ‘enterprise level.'” To achieve this, IOSCO, an association of securities regulators, encouraged its members to identify the individuals who “exercise control or sufficient influence at the enterprise level.”

According to the association’s final report which comes with policy recommendations for regulating the defi market, the identification of such individuals will enable regulators to pinpoint “existing or potential regulatory touchpoints.” In addition to reviewing publicly available information, regulators seeking to identify the so-called touchpoints should also consider engaging relevant persons like academics or researchers. The association added:

“Further, they could consider using available investigatory tools and techniques to gather additional information, including relevant information sharing arrangements with other authorities located within and outside their jurisdiction.”

Addressing Market Integrity and Investor Protection Concerns

In its 66-page report, IOSCO also urged regulators to understand the activities or services being offered by defi platforms and determine if they amount to the provision of financial services by the platform itself or persons linked with it. It also outlined the steps that regulators should take when seeking to find the ideal way of regulating entities controlled by decentralized autonomous organizations (DAOs).

Meanwhile, in the report’s summary, IOSCO claimed that all nine policy recommendations suggested in the report are aimed at addressing market integrity and investor protection concerns arising from the activities of defi platforms. The recommendations also help the association reach its goal of promoting greater consistency when it comes to the regulation and oversight of crypto asset markets, the report added.

As noted in IOSCO’s final report, the December 2023 recommendations are intended to build on the March 2022 report, which presented what the association characterizes as a “comprehensive description of the defi market.” Both reports are part of IOSCO’s ultimate ostensible goal of ensuring that market regulators around the world apply the “same activity, same risk, same regulation/regulatory outcome” approach to defi.

What are your thoughts on this story? Let us know what you think in the comments section below.



from Bitcoin News https://ift.tt/uOqiE1p
Labels:

Comments

Post a Comment

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...
10 comments
Read more

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought...
Post a Comment
Read more

2021 Bitcoin Price Predictions: Analysts Forecast BTC Values Will Range Between Zero to $600K

As bitcoin has touched new price highs on Thursday nearing the $50k handle, people have been curious as to where the price will go in the future. Meanwhile, despite the gains so far, a number of luminaries, analysts, executives, and proponents from the crypto space believe the leading crypto asset will reach between $60k to six-digits this year. Mike Novogratz Predicts $100K Bitcoin: ‘Other CFOs and CEOs Are Saying, What Should We Be Doing?’ Satoshi Nakamoto’s invention has gained mass appeal in recent times as the leading digital asset bitcoin ( BTC ) has reached its highest value ever in 2021. On Thursday morning (EST), BTC spiked to an all-time high (ATH) at $48,697 per unit. Earlier in the morning at around 2 a.m., bitcoin was exchanging hands for $44,485 and saw an 8.98% increase since then. At the time of publication, at 6:30 p.m. (EST) on February 11, 2021, bitcoin (BTC) is swapping for $47,821 per coin. With BTC so close to the $50k mark, people have been forecasting ...
Post a Comment
Read more