Crypto Securities Regulator Demands Power To Regulate Crypto Sites

The International Securities Commission (IOSCO) said that cryptocurrency websites should be regulated by securities regulators.

IOSCO’s call comes the same week as the Financial Stability Council, another international standard-setting body, calling for the development of a comprehensive rule book on international cryptocurrencies, limiting the possibility of ability to escape regulation of crypto companies by choosing the easiest jurisdiction.

IOSCO Secretary General Martin Moloney in a statement published alongside the guidance said “Digital fraudsters can hide behind a ‘digital veil’ that makes it difficult for regulators to locate, identify and take action against them.

IOSCO also warns that apps use techniques taken from mobile games to trick people into buying inappropriate financial products and that financial influencers, also known as finfluencers, offer investment advice without the correct license.

IOSCO thinks it has found a way to solve the problem of international cryptocurrency marketing, where sales targeted in a country like the United States may actually originate in a completely different country. New partnership mechanisms could be developed to help ensure that wrongdoers’ home authorities take action to prevent illegal online activities (including misconduct) related to crypto-assets) at the request of a foreign regulatory authority that has identified a violation

The proposals from the standard-setter are the latest in a series of crypto crackdowns based on worries about money laundering, tax evasion, financial stability and a rise in financial advice launched by new sources such as social media influencers.

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