IOSCO to develop support framework on ICOs and FinTech network

What has happened?

The International Organization of Securities Commissions (IOSCO) has decided to develop a support framework to help its members as they consider how to address issues linked to initial coin offerings (ICOs).

What does this mean?

IOSCO members met at the organisation´s 43rd Annual Conference in Budapest this week to discuss issues facing securities market regulators and supervisors nowadays.

One of the items on the agenda was ICOs.

According to its press release, the IOSCO board discussed how best to approach the continuing growth of ICOs.

"[The board] agreed to develop a Support Framework to assist members as they consider how to address the domestic and cross-border issues stemming from coin offerings that could impact investor or consumer protection."

As the worldwide association of national securities regulatory commissions, IOSCO monitors how its members approach ICOs.

Echoing the concerns of many of its members and other global regulators, the organisation issued a notice earlier this year, cautioning investors against the "clear risks" associated with ICOs.

The board also discussed enforcement practices to mitigate the risks of binary options and other OTC leveraged products to unsophisticated retail investors.

IOSCO also decided to launch a Fintech Network to help the sharing of information, knowledge, and experiences related to FinTech among its members.

"The Fintech Network also will serve as a forum for collaborative work on regulatory issues, trends, and emerging risks," IOSCO said.

With the EU's General Data Protection Regulation (GDPR) about to come into effect on 25 May, the IOSCO board discussed how the regulation interacts with information sharing and cross-border co-operation among IOSCO members under the IOSCO Multilateral Memorandum of Understanding (MMoU) on co-operation and exchange of information.

"The MMoU is the primary instrument used by securities regulators to combat cross-border misconduct in financial markets," the press released explained.

IOSCO is the leading international policy forum for securities regulators, including the US Securities Commission, the Financial Conduct Authority and the European Securities and Markets Authority, and sets global standards for securities regulation.

Based in Madrid, it regulates more than 95% of the world's securities markets in more than 115 jurisdictions.

Next steps

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