đ IOSCO Calls for DeFi Regulation: Who's Really in Charge? đ€
The International Organization of Securities Commissions (IOSCO) urges governments to identify and regulate "responsible persons" behind decentralized finance (DeFi) applications, treating them like traditional financial market players. IOSCO, whose members include the U.S. SEC and U.K. FCA, believes DeFi's decentralization may be an illusion and that these applications could be manipulated.
Key points:
- IOSCO's recommendations call for national regulators to uphold investor protection and market integrity in DeFi, similar to traditional finance (TradFi).
- Pseudonymity and opaque governance in DeFi may make it harder to identify collusion or conflicts of interest, leading to risks like front-running, hacks, or excessive leverage.
- This report follows the Financial Stability Board and International Monetary Fund's joint call for a comprehensive, global approach to crypto regulation.
What are your thoughts on regulating DeFi? Share your opinions in the comments! đ