On May 28, the International Organization of Securities Commissions (IOSCO) published a consultation paper on regulating crypto-asset trading platforms (CTPs).
The consultation paper describes issues and risks identified by IOSCO in relation to CTPs. The consultation paper describes key considerations and provides related toolkits that are intended to assist regulatory authorities who may be evaluating CTPs within the context of their regulatory frameworks. The key considerations relate to matters including:
- Access and on-boarding;
- Safekeeping of participant assets, including custody arrangements;
- Identification and management of conflicts of interest;
- Transparency of operations;
- Market integrity, including the rules governing trading on the CTP, and how those rules are monitored and enforced;
- Price discovery mechanisms; and
- Technology, including resiliency and cyber-security.
In preparing the consultation paper, IOSCO conducted a survey of the regulatory approaches to CTPs that are currently applied or are being considered in member jurisdictions. The consultation paper includes a summary of the findings of the survey.
Comments can be made on the consultation until July 29.
The consultation paper is available here.