The International Organization of Securities Commissions (Iosco) has published its final report on decentralised finance (DeFi).

The Madrid-based body is an authority for the global securities industry and its DeFi proposals aim to create a more consistent approach from international regulators in a rapidly developing part of the market.

The recommendations cover six areas: DeFi structures, common standards, risk identification and management, disclosure, enforcement and cross-border cooperation.

“The risks of crypto-asset markets are real and we are tackling these in a coordinated manner, seeking consistent implementation of these IOSCO Recommendations across our membership to best protect investors globally,” said Jean-Paul Servais, chair, Iosco.

The latest rules come just weeks after Iosco issued recommendations on crypto and digital assets and the standards body has stated that the two proposals are complementary.

“The two sets of policy recommendations on CDA and DeFi provide a coherent and robust policy framework to tackle the core risks posed by crypto-asset markets,” added Tuang Lee Lim, chair of the Iosco Fintech Task Force, set up to develop the policy measures.

“This will help facilitate a fair and transparent playing field where responsible innovation can occur while ensuring investor protection and market integrity outcomes.”

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