Crypto Law Profile

IOSCO Policy Recommendations for Crypto and Digital Asset Markets

IOSCO’s 2023 final recommendations set an outcomes-based global standard for centralized crypto-asset markets, focusing on CASPs, conflicts, market abuse, custody, cross-border cooperation, operational risk and retail protection.

International In force Global standard

At a glance

Status Final IOSCO recommendations published Nov. 16, 2023; non-binding standards for member regulators.
Scope Targets centralized CASP activities, including trading, custody, lending/staking, marketing and distribution.
Core Areas 18 recommendations cover conflicts, market abuse, custody, cross-border cooperation, tech risk and retail distribution.
Implementation IOSCO monitors member implementation through stocktake, thematic review and assessment work.

Overview

The International Organization of Securities Commissions’ Policy Recommendations for Crypto and Digital Asset Markets are a 2023 global standard-setting framework for the regulation of centralized crypto-asset market activities. IOSCO published the final report on Nov. 16, 2023, under identifier FR11/2023. The recommendations are not legislation in any single jurisdiction; they are addressed to relevant authorities and are designed to help IOSCO members apply securities-regulation standards to crypto-asset activities within their own legal frameworks.

IOSCO crypto and digital asset recommendations: scope and status

The final report sets out 18 policy recommendations for crypto and digital asset markets. IOSCO describes them as principles-based, outcomes-focused and aimed at activities performed by crypto-asset service providers, or CASPs. The report focuses on centralized market activity across the crypto-asset lifecycle, including offering, admission to trading, trading, settlement, market surveillance, custody, marketing and distribution to retail investors.

As of July 21, 2026, the recommendations remain a final IOSCO global standard rather than a directly binding law. Member jurisdictions may use existing frameworks or develop new frameworks to pursue regulatory outcomes that are consistent with IOSCO’s Objectives and Principles for Securities Regulation. Domestic legal effect depends on adoption, supervision or rulemaking by the relevant jurisdiction.

The recommendations apply to all types of crypto-assets and include stablecoin-related guidance where trading, disclosure, conflicts, custody or reserve-asset issues create distinct risks. IOSCO later published separate decentralized finance recommendations and an umbrella note, so this profile should be read as the centralized crypto-asset markets component of IOSCO’s broader crypto policy package.

Key provisions for crypto-asset service providers

IOSCO groups the 18 recommendations around six policy areas: conflicts of interest, market manipulation and fraud, custody and client asset protection, cross-border regulatory cooperation, operational and technological risk, and retail distribution. The framework follows the principle of “same activity, same risk, same regulatory outcome,” while allowing domestic implementation to reflect local legal structures and regulatory mandates.

Governance, conflicts and market operation

The report addresses vertically integrated CASP business models, where a single group may combine exchange trading, brokerage, proprietary trading, margin, custody, settlement and re-use of assets. It calls for governance and organizational arrangements to manage conflicts, role-and-capacity disclosures, fair order handling and market-operation transparency. IOSCO also highlights listing and delisting standards, issuer-related disclosures and primary-market conflict management.

Market abuse, custody and retail protection

Recommendations 8 through 10 focus on fraud, market abuse, surveillance and misuse of material non-public information. Custody recommendations address segregation, safeguarding, disclosure of safekeeping arrangements, reconciliation, independent assurance and controls intended to reduce inappropriate mixing or misuse of client assets. Retail distribution guidance focuses on appropriateness, disclosure and marketing practices, including risks associated with social media promotion.

Implementation and international coordination

IOSCO’s final report places cross-border cooperation at the center of the framework because CASPs often operate across jurisdictions or present themselves as borderless. Recommendation 11 addresses information sharing and cooperation among regulators for crypto-asset issuance, trading and other activities. The Financial Stability Board also lists the IOSCO recommendations in its compendium as a policy standard for financial regulation and supervision.

IOSCO followed the final report with implementation monitoring. In 2025, IOSCO published a thematic review assessing progress across 20 jurisdictions on selected recommendations covering governance, conflicts, market abuse, cross-border cooperation, custody, retail client protections and disclosures. The review found significant progress but noted that implementation remains uneven and that jurisdictions continue to develop legal and regulatory frameworks. IOSCO said the review would inform a 2026 assessment methodology and later regular consistency assessments.

Why the IOSCO 2023 recommendations matter

For CryptoSlate readers, the profile is most useful as a reference point for how securities regulators may align crypto market rules across borders. It does not create direct compliance obligations for exchanges, custodians, issuers or investors unless an individual jurisdiction incorporates the recommendations through binding law, regulation, licensing conditions, supervision or enforcement practice.

Key provisions

Common regulatory outcomes

Regulators are encouraged to use existing or new frameworks to achieve investor-protection and market-integrity outcomes consistent with IOSCO standards.

Regulatory perimeter Source

Governance and conflicts

CASP governance should address conflicts from vertical integration, including role disclosures, organizational controls and possible separation of functions.

Conflicts Source

Order handling, trade disclosure and listings

Recommendations cover fair order handling, market-operation transparency, listing and delisting standards, and disclosures for crypto-assets and issuers.

Market structure Source

Fraud, market abuse and surveillance

Regulators should address manipulative practices, insider dealing, market surveillance, and misuse or leakage of material non-public information.

Market abuse Source

Custody and client asset protection

Custody recommendations address segregation, safeguarding, safekeeping disclosures, reconciliation, independent assurance and security of client assets.

Custody Source

Cross-border cooperation and retail distribution

The framework emphasizes regulator information sharing, supervision and enforcement cooperation, plus retail appropriateness, risk disclosure and marketing safeguards.

Cross-border Source

Timeline

  1. IOSCO crypto consultation issued

    IOSCO issued proposed crypto and digital asset policy recommendations for public consultation.

    Under consultation Source
  2. Consultation comment period closed

    Public comments on the IOSCO consultation were due by July 31, 2023.

    Under consultation Source
  3. Final CDA recommendations published

    IOSCO published its final report with 18 policy recommendations for crypto and digital asset markets.

    Enacted Source
  4. Implementation roadmap approved

    IOSCO approved a multi-phase roadmap in December 2023 to monitor and promote implementation.

    Enacted Source
  5. Implementation thematic review published

    IOSCO published a review of selected jurisdictions’ implementation of key CDA recommendations.

    Enacted Source

Who it affects

Actors

Crypto-asset service providers, IOSCO, Securities regulators

Asset classes

Crypto assets, Stablecoins

Official sources

Editorial note

Non-binding IOSCO global standard. Domestic legal effect depends on implementation by national or regional authorities.