IOSCO Calls for Stronger Global Implementation of Crypto and Digital Asset Regulation
The International Organization of Securities Commissions (IOSCO) has published its Final Report assessing how jurisdictions worldwide are implementing IOSCO’s 2023 Policy Recommendations for Crypto and Digital Asset (CDA) Markets. The report highlights steady progress in regulatory adoption but warns that inconsistencies and gaps in enforcement could leave investors exposed and enable regulatory arbitrage across borders.
Conducted by IOSCO’s Fintech Task Force and Assessment Committee, the review covered twenty jurisdictions from both advanced and emerging markets. It evaluated how countries have implemented recommendations covering governance, , fraud prevention, custody practices, investor protection, and disclosures. The review also emphasized the importance of cross-border cooperation as crypto and digital asset activities increasingly operate across multiple regulatory environments.
In parallel with IOSCO’s review, the Financial Stability Board (FSB) released its own thematic assessment of crypto-asset and global stablecoin regulation. Both organizations published a joint note emphasizing the need for coordinated action to ensure consistent global implementation of crypto oversight frameworks.
Takeaway
The IOSCO review found that while many jurisdictions have made notable progress, the quick-evolving crypto ecosystem still presents risks related to investor protection, market integrity, and operational resilience. Key areas identified for improvement include the need for greater regulatory alignment, enhanced enforcement coordination, and proactive monitoring of emerging risks, such as DeFi protocols and tokenized securities.
IOSCO emphasized that the implementation of its CDA Policy Recommendations is a matter of urgency. The organization is expanding its capacity-building programs to assist regulators strengthen technical expertise and accelerate adoption of the standards. By facilitating knowledge platform, IOSCO aims to improve the quality and consistency of crypto-asset oversight worldwide.
“In view of the quick-evolving crypto-asset ecosystem, this assessment report is an significant milestone in encouraging jurisdictions to ensure their frameworks sufficiently address challenges,” said Jean-Paul Servais, IOSCO Board Chair. “The complementarity between the IOSCO and FSB reports highlights the importance of principle-based global answers to these challenges.”
Takeaway
Cross-border information sharing emerged as one of the report’s central themes. With most (CASPs) operating across jurisdictions, IOSCO warns that limited cooperation among regulators could hamper effective supervision. The report recommends exploring new mechanisms for international data platform that extend beyond enforcement to include the authorization and supervision phases of regulatory oversight.
“Cross-border cooperation emerges as a critical common area of focus both in IOSCO and FSB reports,” said Matthew Long, Director of Payments & Digital Assets at the and Review Co-Chair. “Enhanced international cooperation is essential to address regulatory arbitrage and ensure consistent and coherent oversight.”
IOSCO’s findings signal an increasing convergence between national regulators viewking to close compliance gaps while balancing innovation and investor protection. The organization aims to develop a standardized assessment methodology for future reviews to measure implementation progress across member jurisdictions.
Takeaway
“While progress has been made in many jurisdictions, crypto-assets are increasing their footprint across the world,” said Laurent van Burik, Head of Unit at CSSF Luxembourg and Review Co-Chair. “More must be done as new business models and risks continue to emerge. Our report serves as an initial assessment under IOSCO’s Crypto-Asset Implementation Roadmap and will guide the development of future review methodologies.”
The release of IOSCO’s review marks a major step toward coordinated oversight of digital asset markets. It emphasizes the importance of global consistency, investor protection, and information sharing as foundational elements of the next phase in crypto regulation. As jurisdictions move to implement IOSCO’s recommendations, the organization plans to monitor progress closely and refine its framework to keep pace with technological change.
Together with the FSB’s concurrent findings, the IOSCO report represents a unified effort among global standard setters to close regulatory gaps and enhance resilience across the digital asset ecosystem.
