According to CoinDesk, a report released by the International Organization of Securities Regulators (IOSCO) on Thursday stated that governments should identify the responsible entities for so-called decentralized finance (DeFi) applications and regulate them as they would regular financial market participants. Supervision. IOSCO is concerned that innovative financial applications may be susceptible to manipulation and is skeptical of the premise that no one can be held legally liable. The recommendations issued by IOSCO state that national regulators should determine who is truly responsible and give them investor protection and market integrity obligations comparable to those in the traditional financial sector. The report also states that the regulatory approach should be functionally based to achieve the same or consistent regulatory outcomes for investor protection and market integrity as required by traditional financial markets.