{"id":421111,"date":"2022-03-24T17:01:28","date_gmt":"2022-03-24T14:01:28","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/iosco-says-defi-is-quickly-evolving-and-cloning-financial-markets\/"},"modified":"2022-03-24T17:01:28","modified_gmt":"2022-03-24T14:01:28","slug":"iosco-says-defi-is-quickly-evolving-and-cloning-financial-markets","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/iosco-says-defi-is-quickly-evolving-and-cloning-financial-markets\/","title":{"rendered":"# IOSCO says DeFi is quickly evolving and &#8216;cloning financial markets&#8217;"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a35efcca29f3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a35efcca29f3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/iosco-says-defi-is-quickly-evolving-and-cloning-financial-markets\/#%E2%80%9D_IOSCO_says_DeFi_is_quickly_evolving_and_%E2%80%98cloning_financial_markets_%E2%80%9C\" >&#8221; IOSCO says DeFi is quickly evolving and &#8216;cloning financial markets&#8217; &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_IOSCO_says_DeFi_is_quickly_evolving_and_%E2%80%98cloning_financial_markets_%E2%80%9C\"><\/span>&#8221; IOSCO says DeFi is quickly evolving and &#8216;cloning financial markets&#8217; &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>As decentralized finance (DeFi) space grows, regulators are giving more effort to conducting research and providing a means to better understand the emerging industry.<\/p>\n<p>Today, the International Organization of Securities (IOSCO) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.iosco.org\/library\/pubdocs\/pdf\/IOSCOPD699.pdf\">published<\/a> a report that aims to give a perspective on DeFi and highlight some areas that may be potential areas of concern to regulators. According to the report, DeFi is growing and many of its mechanisms are very similar to traditional financial markets.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-03\/dd9a47a0-f025-4710-b183-6a3354ae8735.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Total Value Locked in DeFi. Source: IOSCO report<\/em><\/figcaption><\/figure>\n<p>Apart from mirroring traditional finance, IOSCO mentions that a lot of financial products, services, arrangements, and activities in the DeFi industry sometimes overlap with more traditional finance operations.<\/p>\n<p>Because of this, IOSCO encouraged regulators to understand the implications of DeFi developments with regard to their jurisdictions. As the DeFi market expands, IOSCO notes that \u201ca granular and holistic understanding of the DeFi market\u201d can enhance regulators\u2019 ability to create laws relevant to their domains.<\/p>\n<p>In the report, IOSCO recognized that there are many benefits presented by the DeFi industry. IOSCO chair Ashley Alder said that \u201cDeFi is a novel and fast-growing area of financial services.\u201d However, the organization also noted the risks that it poses to users as the industry develops. Adler described the report as an outline of the \u201ckey areas of concern for IOSCO.\u201d<\/p>\n<p>Along with the report, IOSCO created a task force that will cover the DeFi market. Tuang Lee Lim, the chair of the newly-formed task force, mentioned that:<\/p>\n<blockquote><p>&#8220;IOSCO\u2019s decision to establish the task force signifies our members\u2019 resolve to take timely and coordinated policy action to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ropriately address the risks arising from this fast-growing area.\u201d<\/p><\/blockquote>\n<p><strong><em>Related: <\/em><\/strong><strong><em>DeFi to reach mass adoption via institutional participation, DEX founder says<\/em><\/strong><\/p>\n<p>Meanwhile, a report by KuCoin Labs published in February notes that DeFi players may opt for DAO governance as regulatory risks are closing in. The report mentioned that DAOs can be recognized as legal entities and with it, community interest may be prioritized.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/iosco-says-defi-is-quickly-evolving-and-cloning-financial-markets\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; IOSCO says DeFi is quickly evolving and &#8216;cloning financial markets&#8217; &#8220; As decentralized finance (DeFi) space grows, regulators are giving more effort to conducting research and providing a means to better understand the emerging industry. Today, the International Organization of Securities (IOSCO) published a report that aims to give a perspective on DeFi and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":421112,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDMvNzc3ZDZkYzQtZTE3OC00MjY3LTgxOGUtYjRjZGNkY2I5YTlkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74868,75012,86389,70934],"class_list":["post-421111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-defi","tag-derivatives","tag-marketplace","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/421111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=421111"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/421111\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/421112"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=421111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=421111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=421111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}