International Organization of Securities Commissions: Regulatory authorities should have the power to demand the closure of foreign illegal cryptocurrency websites

ChainCatcher news, the International Organization of Securities Commissions (IOSCO) stated in a report on Wednesday that securities regulators should have the authority to demand the shutdown of foreign crypto websites. IOSCO also warned that applications are using tactics borrowed from mobile games to lure people into purchasing unsuitable financial products; while financial influencers (Finfluencers) provide investment advice without obtaining licenses.

The report stated that financial services are gradually becoming "digitalized," and rules need to be adjusted. The organization noted that cryptocurrencies can be particularly opaque and volatile. IOSCO Secretary General Martin Moloney stated, "Digital fraudsters may hide behind a 'digital veil,' making it difficult for regulators to find, identify, and take action against them."

The report indicated that crypto products may deceive investors while evading regulations applicable to traditional financial products like stocks. However, IOSCO believes it has found a way to address the issue of international crypto marketing. "New cooperative mechanisms may be established to help ensure that local regulators of wrongdoers take action to curb online illegal activities (including misconduct related to crypto assets) based on requests from foreign regulators that have identified violations." The report added that this could mean, for example, the SEC requesting foreign authorities to shut down or block access to illegal websites or social media pages, halt trading, or recover fines related to overseas crypto websites.

According to previous reports, television reality star Kim Kardashian recently reached a settlement with the U.S. Securities and Exchange Commission (SEC) and paid $1.26 million, after the SEC accused Kardashian of promoting the EthereumMax token on Instagram without disclosing the payment she received for the promotion. (Source link)