MEDIA RELEASE

International Organization of Securities Commissions
Organisation internationale des commissions de valeurs
Organização Internacional das Comissões de Valores
Organización Internacional de Comisiones de Valores‫اﻟﻣﻧظﻣﺔ اﻟدوﻟﯾﺔ ﻟﮭﯾﺋﺎت اﻷوراق اﻟﻣﺎﻟﯾﺔ‬IOSCO/MR/33/2023
Madrid, 19 December 2023
IOSCO Finalises its Policy Recommendations for Decentralized Finance
IOSCO, the global standard setter for securities market regulators, has today published its Final
Report with Policy Recommendations for Decentralized Finance (DeFi).
The nine Policy Recommendations aim to address market integrity and investor protection
concerns arising from DeFi by supporting greater consistency of regulatory frameworks andoversight in member jurisdictions.
The Recommendations cover six key areas: (1) Understanding DeFi Arrangements andStructures, (2) Achieving Common Standards of Regulatory Outcomes, (3) Identification andManagement of Key Risks (4) Clear, Accurate and Comprehensive Disclosures (5)Enforcement of Applicable Laws, and (6) Cross-Border Cooperation.
The DeFi Policy Recommendations are complementary to the Policy Recommendations for
Crypto and Digital Assets (CDA) Markets issued in November 2023. The two sets of IOSCOrecommendations have been developed in accordance with IOSCO’s Crypto-Asset Roadmap
2022/2023, and the interoperability between the two sets of Recommendations is detailed in
the Umbrella Note which has been published alongside the DeFi Final Report.
With delivery of these Recommendations, IOSCO is now shifting attention towards
implementation monitoring, capacity building and technical assistance needs of its members.
IOSCO recognises that jurisdictions are at different stages of tackling the risks presented by
crypto-asset markets and decentralized finance. Some have existing regimes in place whileothers must develop new, bespoke frameworks.
Jean-Paul Servais, IOSCO Chair said:
I am pleased that IOSCO has delivered on the policy ambitions outlined in our Crypto-Asset
Roadmap in less than eighteen months. The risks of crypto-asset markets are real and we aretackling these in a coordinated manner, seeking consistent implementation of these IOSCO
Recommendations across our membership to best protect investors globally.

MEDIA RELEASE

International Organization of Securities Commissions
Organisation internationale des commissions de valeurs
Organização Internacional das Comissões de Valores
Organización Internacional de Comisiones de Valores‫اﻟﻣﻧظﻣﺔ اﻟدوﻟﯾﺔ ﻟﮭﯾﺋﺎت اﻷوراق اﻟﻣﺎﻟﯾﺔ‬Tuang Lee Lim, Chair of the IOSCO Board-Level Fintech Task Force, set up to develop thepolicy measures, said:
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. This will help facilitate
a fair and transparent playing field where responsible innovation can occur while ensuring
investor protection and market integrity outcomes.

NOTES TO THE EDITORS
1. IOSCO is the leading international policy forum for securities regulators and isrecognized as the global standard setter for securities regulation. The organization'smembership regulates more than 95% of the world's securities markets in some 130
jurisdictions, and it continues to expand.
2. The IOSCO Board is the governing and standard-setting body of IOSCO and is made upof 35 securities regulators. Mr. Jean-Paul Servais, the Chair of Belgium’s FinancialServices and Markets Authority (FSMA) is the Chair of the IOSCO Board. The membersof the IOSCO Board are the securities regulatory authorities of Australia, Bahamas,Bangladesh, Belgium, Brazil, China, Egypt, France, Germany, Greece, Hong Kong,India, Ireland, Italy, Japan, Korea, Kuwait, Malaysia, Mauritius, Mexico, Morocco, theNetherlands, Oman, Ontario, Peru, Quebec, Saudi Arabia, Singapore, Spain, Sweden,Switzerland, Türkiye, the United Kingdom and the United States of America (both theU.S. Commodity Futures Trading Commission and U.S. Securities and Exchange
Commission). The Chair of the European Securities and Markets Authority and the Chairof IOSCO´s Affiliate Members Consultative Committee are also observers.
3. IOSCO aims through its permanent structures:•to cooperate in developing, implementing and promoting internationally recognized
and consistent standards of regulation, oversight and enforcement to protect
investors, maintain fair, efficient and transparent markets, and seek to address
systemic risks;•

to enhance investor protection and promote investor confidence in the integrity ofsecurities markets, through strengthened information exchange and cooperation inenforcement against misconduct and in supervision of markets and market

MEDIA RELEASE

International Organization of Securities Commissions
Organisation internationale des commissions de valeurs
Organização Internacional das Comissões de Valores
Organización Internacional de Comisiones de Valores‫اﻟﻣﻧظﻣﺔ اﻟدوﻟﯾﺔ ﻟﮭﯾﺋﺎت اﻷوراق اﻟﻣﺎﻟﯾﺔ‬intermediaries; and•to exchange information at both global and regional levels on their respective
experiences to assist the development of markets, strengthen market infrastructure andimplement appropriate regulation.

MEDIA ENQUIRIES
Susan Tether
Email: s.tether@iosco.org
Website: www.iosco.org
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