Briefing
The International Organization of Securities Commissions and the Financial Stability Board have published a thematic review confirming significant progress in 20 jurisdictions but simultaneously issuing a strategic call for greater regulatory consistency. This action immediately elevates the compliance pressure on global firms by identifying the lack of uniform implementation as the primary source of ongoing market integrity risks and regulatory arbitrage opportunities. The core consequence is a renewed focus on the “same activity, same risk, same regulation” principle, compelling jurisdictions to strengthen enforcement and harmonize rules across CDA markets, with the reports published on October 16, 2025.
Context
Prior to this review, the digital asset landscape was characterized by fragmented, patchwork regulation, leading to a high degree of legal ambiguity for multinational entities. The prevailing challenge was the inconsistent application of core principles → such as custody, conflicts of interest, and market abuse → across different national competent authorities. This environment allowed firms to strategically domicile in jurisdictions with minimal oversight, creating systemic risk and undermining the effectiveness of the global 2023 CDA Policy Recommendations.
Analysis
This review fundamentally alters the operational calculus for global Crypto-Asset Service Providers (CASPs) by signaling the end of the regulatory arbitrage era. Firms must now shift from optimizing their structure for the least-regulated jurisdiction to building a compliance framework that satisfies the highest common denominator of the 2023 recommendations. The chain of effect is direct → the report will drive National Competent Authorities (NCAs) to accelerate rulemaking and strengthen cross-border cooperation mechanisms, requiring CASPs to immediately upgrade their governance, conflicts of interest, and retail client protection systems to align with the global standard-setter’s mandate. This is a critical update because it transforms a voluntary policy framework into an enforced global benchmark.
Parameters
- Jurisdictions Reviewed → 20 (The number of advanced and emerging economies assessed in the thematic review.)
- Core Recommendations → 18 (The number of policy recommendations for CDA markets published by IOSCO in 2023.)
- Review Focus → Investor Protection and Market Integrity (The two primary areas of risk the review examined.)
- Implementation Principle → Same Activity, Same Risk (The core regulatory principle guiding the policy recommendations.)
Outlook
The immediate forward-looking phase involves NCAs using this report as a mandate to close identified regulatory gaps through accelerated domestic rulemaking and enhanced cross-border information-sharing agreements. The second-order effect will be a global reduction in regulatory fragmentation, setting a clear precedent that the “same activity, same risk” principle is the non-negotiable standard for all digital asset market activities. This action will ultimately de-risk the sector for institutional adoption but will simultaneously increase compliance costs for CASPs operating across multiple jurisdictions.
Verdict
The joint IOSCO and FSB assessment establishes a definitive global benchmark for digital asset regulation, compelling all jurisdictions to align domestic frameworks and strengthen enforcement to mitigate systemic risk and secure market maturation.
