The International Organization of Securities Commissions (IOSCO) has revealed the first-ever comprehensive framework for regulating crypto assets and digital markets.
This initiative has been driven by the lessons learned from the collapse of the FTX exchange last year, which raised concerns about consumer protection.
The crypto industry, primarily subject to anti-money laundering checks, has been advocating for a unified global approach to regulation due to varying rules in different jurisdictions.
IOSCO chair Jean-Paul Servais has hailed the recent recommendations as a significant step in tackling immediate risks related to investor protection and market integrity. These proposed standards cover various aspects, including conflict of interest, market manipulation, cross-border regulatory cooperation, custody of crypto assets, operational risks, and the treatment of retail customers.
Coinbase Announces Launch Of International Derivatives Exchange
Coinbase, the largest cryptocurrency exchange in the US, has announced the launch of an international derivatives exchange catering to institutional crypto traders outside of the country.
The move is aimed at diversifying its business in the face of strained relations with American regulators. The Coinbase International Exchange will offer Bitcoin and Ethereum perpetual futures, subject to regulatory approval from the Bermuda Monetary Authority (BMA).
Initially, the platform will be limited to non-US institutional clients.
Emmanuel Goh, Head of Coinbase International Exchange, emphasised that this expansion aligns with the company’s global scaling plans, which were unveiled in May 2022.
Coinbase is currently grappling with legal uncertainties after receiving a notice from the US Securities and Exchange Commission (SEC) regarding potential lawsuits against the company across several business lines. This has added to the challenges faced by the San Francisco-based exchange.
Regulatory Action Against Huobi In Malaysia
Malaysia’s Securities Commission (SC) has ordered the closure of Huobi, a crypto exchange based in Seychelles.
The commission found that Huobi had been operating a digital asset exchange in Malaysia without proper registration, contravening the Capital Markets and Services Act 2007.
The regulator has issued a public reprimand against the exchange and its founder, Leon Li, who has been instructed to oversee the winding down of local operations, discontinue communication with Malaysian investors, disable the website, and withdraw the app from app stores. The regulatory action was taken due to concerns about the platform’s compliance with local regulations and the protection of investors’ interests.