IOSCO Calls for Enhanced Regulatory Powers Amid Digital Marketing Risks

IOSCO Seeks Stronger Regulatory Measures

The Board of the International Organization of Securities Commissions (IOSCO) has emphasized the need for regulators to bolster their powers in response to growing risks associated with the digitalization of retail marketing and distribution.

Key Challenges in Digital Marketing

The rise of digital platforms has introduced significant challenges for regulators, particularly in overseeing the proliferation of crypto assets. These challenges include ensuring investor protection, maintaining market integrity, and addressing potential financial stability risks.

Proposed Regulatory Measures

IOSCO has outlined a set of measures for its member countries to consider when developing policies and enforcement strategies for retail online offerings and marketing. These measures aim to address the unique risks posed by digitalization, including the rapid evolution of crypto assets and their associated marketing practices.

Focus on Crypto Assets

The report highlights the need for regulators to adapt to the fast-growing crypto asset market, which has become a significant focus area for retail investors. By enhancing oversight, regulators can better mitigate risks and ensure compliance with existing securities laws.

Global Collaboration

IOSCO has called for increased international cooperation to address the cross-border nature of digital marketing and distribution. This collaboration is essential for creating a cohesive regulatory framework that can effectively manage the challenges posed by digitalization.

Conclusion

As digital marketing and crypto assets continue to reshape the retail investment landscape, IOSCO's recommendations underscore the importance of robust regulatory oversight to protect investors and maintain fair markets.