IOSCO’s crypto framework gives securities regulators a global baseline for supervising crypto asset service providers, protecting client assets and addressing market abuse, conflicts, operational risks and cross-border activity.
IOSCO crypto standards provide a global securities-regulation baseline for crypto and digital asset markets. The International Organization of Securities Commissions (IOSCO), the global standard-setter for securities markets, finalized 18 policy recommendations in 2023 for crypto asset service providers (CASPs), targeting investor protection and market integrity while seeking regulatory outcomes comparable with traditional financial markets.
Key Takeaways
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IOSCO published 18 recommendations for crypto and digital asset markets on November 16, 2023, covering six key areas.
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The framework follows “same activity, same risk, same regulation/regulatory outcome,” rather than creating one global crypto law.
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IOSCO targets conflicts of interest, market manipulation, insider trading, fraud, custody, client assets, technological risk, retail distribution and cross-border risks.
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IOSCO’s October 16, 2025 thematic review found significant progress, but implementation remained incomplete and uneven across member jurisdictions.
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Regulators are encouraged to strengthen information sharing, cross-border cooperation, enforcement and capacity building as new crypto-asset business models emerge.
IOSCO Crypto Policy Recommendations and Regulatory Outcomes
IOSCO’s 2023 Policy Recommendations for Crypto and Digital Asset Markets apply an outcomes-focused approach to centralized cryptoasset service providers.
| Six key areas |
Regulatory focus |
| Conflicts of interest |
Vertical integration and conflicts when one CASP combines trading platforms, custody, brokerage or other functions. |
| Market integrity |
Market manipulation, insider trading, fraud, market abuse, suspicious transactions and market surveillance requirements. |
| Custody |
Client assets, segregation and asset protection. |
| Cross-border risks |
Regulatory cooperation, information sharing and reducing regulatory arbitrage. |
| Operational risk |
Technological resilience, cybersecurity, system reliability and technological risk. |
| Retail distribution |
Retail access, suitability, disclosures, marketing and oversight. |
The recommendations also support procedural listing standards, access to relevant trading history and appropriate systems for detecting misconduct. They sit alongside IOSCO objectives, IOSCO standards and existing principles of securities regulation rather than replacing national regulatory frameworks.
Same Activities, Same Risks in Digital Asset Markets
The policy recommendations focus on economic functions, not labels. A crypto asset, trading venue or CASP performing a function similar to a regulated securities-market activity should face comparable safeguards where the same risks arise.
This approach seeks to bridge traditional finance and the digital asset ecosystem while allowing jurisdictions to adopt substantive rules suited to local law. It can also apply to crypto and digital businesses using smart contracts or off-chain infrastructure.
IOSCO separately developed recommendations for decentralized finance. The Financial Stability Board focuses more directly on financial-stability risks and global stablecoin arrangements, creating complementary regulatory frameworks across asset markets. The relationship between international standard-setters also shapes the broader global virtual asset regulatory landscape.
Crypto Asset Market Integrity and Client Asset Protection
Market integrity concerns are central to IOSCO crypto regulation. Regulators are expected to address manipulation, insider trading and fraud, particularly where vertically integrated cryptoasset businesses create conflicts of interest arising from multiple roles.
Custody standards focus on safeguarding client assets. Retail rules emphasize suitability and appropriate marketing, while operational standards address cybersecurity and technological resilience. Depending on the jurisdiction, securities commissions may also apply requirements covering financial benchmarks, trading venues and other market infrastructure.
Cross-Border Cooperation and Capacity Building
Crypto markets operate across borders, making regulatory cooperation essential. IOSCO encourages member jurisdictions to improve information sharing, supervisory coordination and enforcement so firms cannot exploit gaps between cryptoasset regulatory regimes.
The 2025 IOSCO thematic review reported significant progress but continuing implementation hurdles, particularly around consistency, regulatory arbitrage and cross-border cooperation. IOSCO said capacity building and knowledge sharing would support regulators as new crypto-asset activities and business models emerge.
What Changed in IOSCO Crypto Standards?
The 18 recommendations were finalized on November 16, 2023. On October 16, 2025, IOSCO published a separate final report assessing implementation across 20 jurisdictions. It found progress in governance, conflicts, fraud and market abuse, custody, retail protections, disclosures and cooperation, while calling for greater consistency and stronger enforcement.
The review complements Financial Stability Board work on crypto-asset activities and global stablecoins. This division of responsibilities is also relevant to the broader IMF and crypto regulatory framework, where global bodies coordinate on financial stability, regulatory frameworks and cross-border risks.
Conclusion
IOSCO crypto standards are not a binding global crypto rulebook. They provide a common baseline for regulators seeking the same regulatory outcomes for comparable risks in crypto and traditional financial markets. Their practical impact depends on implementation by individual jurisdictions.
FAQ
How many IOSCO crypto recommendations are there?
IOSCO finalized 18 recommendations in 2023, grouped into six key areas covering conflicts, market abuse, custody, cross-border cooperation, operational risk and retail distribution.
Does IOSCO directly regulate crypto exchanges?
No. IOSCO develops international policy recommendations and securities-market standards; national or regional regulators adopt and enforce applicable rules.
What did IOSCO’s 2025 crypto review find?
The review found significant progress but continuing gaps in consistency, enforcement, regulatory arbitrage and cross-border cooperation. Its findings are intended to support further IOSCO assessment work and implementation efforts.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
