The International Organization of Securities Commissions (IOSCO) has released a pivotal report detailing nine policy recommendations aimed at managing risks in the Decentralized Finance (DeFi) sector. These recommendations are designed to bolster market integrity and safeguard investors in this rapidly evolving domain. The IOSCO emphasizes the need for consistent regulatory frameworks and supervision across its jurisdictions. Key focus areas include understanding DeFi structures, standardizing regulatory outcomes, managing risks, clear disclosures, law enforcement, and promoting international cooperation.
These DeFi policy directives complement the earlier recommendations for Crypto and Digital Assets (CDA) Markets issued in November 2023, aligning with IOSCO’s Crypto-Asset Roadmap for 2022/2023. The organization now shifts towards implementation, monitoring progress, and providing necessary support to its diverse member base. The IOSCO recognizes the varying stages of crypto-asset market risk management across jurisdictions and seeks to harmonize efforts to protect global investors effectively.
Statista forecasts that the DeFi market will reach a revenue of $37.04 billion by 2028, underscoring the sector's growth potential and the importance of robust regulatory frameworks.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.