IOSCO Says DeFi Space is Evolving Quickly, Implores Regulators to Acquire Necessary Education to Better Oversee the Space

The Chair at the International Organization of Securities (IOSCO) has spoken on the ongoing evolution of the decentralized finance (DeFi) space. According to IOSCO Chair Ashley Alder, the DeFi space is growing exponentially and ‘cloning financial markets.’

The IOSCO recently published a report that sheds light on DeFi and points out potential key areas of concern to regulators. It is worth noting that due to the emerging popularity of DeFi, regulators have been conducting more research on the space. In the IOSCO report, the global regulators association also mentioned that the DeFi industry presented several benefits amid associated development risks.

IOSCO also pointed out that a lot of financial products, services, and patterns in the DeFi industry often overlap with traditional finance activities. As a result, the global association of securities regulators said it was important that regulators understand DeFi developments. According to IOSCO, this “need to understand” held true about the relative jurisdictions of the said regulators.

The IOSCO also established a task force for covering the DeFi market. According to Huang Lee Lim, the chair of the newly-formed task force:

“IOSCO’s decision to establish the task force signifies our members’ resolve to take timely and coordinated policy action to appropriately address the risks arising from this fast-growing area.”

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