In the wake of the recent fiasco involving Terra crash, there seems to be an increased push for regulation. In a latest, the community of financial planners came up with recommendations for crypto market regulation.
Need To Regulate Crypto Market
The financial planning standards board (FPSB) made the recommendations to the IOSCO Retail Market Conduct Task Force. FPSB is an association for the global financial planning profession. The International Organization of Securities Commissions (IOSCO) is an association of organizations that regulate the worlds securities and futures markets. The body has been assisting the community in evaluating the issues and risks relating to the crypto trading platforms.
The FPSB stressed on the need to regulate crypto assets. It also suggested ensuring that financial advisers are appropriately qualified to do the advising.
The recommendations spoke on how regulators around the world could address the potential adverse impacts of the rise of complex financial products. It also suggested addressing the impact of technology innovation and social media personalities.
Dante De Gori, FPSB head of stakeholder engagement, said,“Financial fraud and scams are certainly not new, but the rapid emergence and evolution of crypto assets and other complex digital assets means the level of risk and exposure for retail investors is becoming heightened.”
‘Crypto Landscape Fast-Changing’
He added that licensing and product regulation are struggling to keep up with this fast-changing landscape. This is leaving financial planners unsure of their regulatory obligations, he explained.
“The FPSB, the FPSB network and the global certified planners professional community have a role to play in supporting IOSCO members seeking to better protect investors in their territories. FPSB has provided IOSCO with a series of recommendations that we believe will serve retail investors and support IOSCO members efforts to develop regulatory toolkits and other measures to protect retail investors,” De Gori added.
Amid rising scope of crypto industry, there have been associated challenges like cybercrimes, scam tokens, and money laundering. This has led to a demand for regulating the market from all quarters.
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