The International Organization of Securities Commissions (IOSCO) recently issued policy recommendations for regulating the decentralized finance (DeFi) sector, causing concern among some in the crypto community. However, Matthew Harcourt, an analyst at Apollo Crypto, believes these guidelines shouldn't be seen as a death sentence for DeFi. The recommendations include identifying "responsible persons" in DeFi and applying traditional financial market regulations to the sector.
Despite some describing the IOSCO report as a potential end to DeFi, Harcourt highlights that the document acknowledges DeFi as an "important, evolving, and expanding technological innovation." He points out that while the recommendations might impact early-stage DeFi innovations, they do not pose an existential risk to the sector as a whole.
IOSCO, which regulates a significant portion of the global securities market, suggests that decentralized autonomous organizations (DAOs) be regulated like traditional financial services firms. This approach is seen as a way to ensure that all financial activities, regardless of the technology used, comply with applicable laws.
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.
