A Global Perspective on Digital Asset Innovation ft. Tajinder Singh, Deputy Secretary General of the International Organization of Securities Commissions (IOSCO)
Nov 15, 2023
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Tajinder Singh, Deputy Secretary General of IOSCO, discusses regulation in the crypto industry, focusing on investor protection and market integrity. The importance of collaboration, aligning regulatory approaches, and engaging with regulators for digital asset innovation is highlighted.
Regulators should focus on investor protection, market integrity, and assessing risks in the crypto space to establish global standards.
Effective coordination and collaboration between regulatory organizations like IOSCO and FSB are crucial to avoid market fragmentation and ensure consistent guidance in the crypto industry.
Deep dives
Importance of Regulatory Guardrails in the Crypto Space
The guest, Dejinder Singh, Deputy Secretary General of IOSCO, highlights the significance of regulatory guardrails in the crypto space. He explains that regulators need to consider the activities and associated risks in the system while focusing on investor protection and market integrity. Singh mentions the 18 recommendations issued by IOSCO, which cover areas like conflicts of interest, organizational governance, transparency, and custody of assets. He emphasizes the importance of regulatory cooperation due to the global and cross-border nature of the crypto industry. Ultimately, the goal is to foster innovation while ensuring investor protection.
Collaboration with G20 and Financial Stability Board
Singh discusses how IOSCO collaborates with G20 and the Financial Stability Board (FSB) to shape the global regulatory framework for cryptocurrencies. He highlights the coordination between IOSCO and the FSB, ensuring consistent guidance and avoiding market fragmentation. Singh mentions the importance of cross-referencing their work and maintaining close communication between the chairs of both organizations. He also mentions the use of regulatory instruments like the IOSCO multilateral memorandum of understanding. The goal is to achieve consistent global standards and address gaps through capacity building and technical assistance.
Engagement, Consistency, and Mitigating Risks
Singh emphasizes the need for engagement between regulators and crypto innovators. He encourages innovators to understand that regulators aim to protect the system and build trust. He highlights the importance of consistent regulation and the role of engagement in achieving that. Singh points out the risks in the crypto space and suggests that countries should not wait for harm to occur before implementing regulations. He also emphasizes the significance of developing a regulatory framework that inspires trust and enables safe use cases to bring about the transformative potential of blockchain technology.
In a special Meridian episode of block by block, Tajinder Singh, Deputy Secretary General of the International Organization of Securities Commissions (IOSCO) sat down with Denelle at SDF’s annual Meridian conference to talk regulation, global standards and coordination, and advice for innovators navigating a borderless technology across different regulatory and legal jurisdictions. Tajinder brings a background in technology to his role at IOSCO to help find common ground among regulators by focusing on the basics – investor protection, market integrity and the principle, “same activity, same risk, same regulatory outcomes,” to inform global standards.
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