IOSCO Publishes Report on Education of Retail Investors Regarding Risks of Crypto-Assets


Thursday, December 24, 2020 / 07.47AM / By IOSCO / Header Image Credit:


Proshare Nigeria Pvt. Ltd.


The Board of the International Organization of Securities Commissions on December 22, 2020 published a report that seeks to help regulators inform retail investors about the risks and characteristics of crypto-assets.


Crypto-assets carry risks that retail investors may not fully understand, increasing the chance of losses on investments in these assets. The IOSCO report titled Investor Education on Crypto-Assets identifies an array of possible risks to investors, including such things as lack of market liquidity, volatility, partial or total loss of the invested amount, insufficient information disclosure and fraud. 


The report describes methods that regulators can use to provide educational material to retail investors on the risks of investing in crypto-assets and offers four areas of guidance covering the following activities:

  • Developing educational content about crypto-assets;
  • Informing the public about unlicensed or fraudulent firms;
  • Using a variety of communication channels to inform investors; and
  • Forming partnerships to develop and disseminate educational materials.


In recent years, IOSCO members have expressed concerns about the use of crypto-assets in areas ranging from trading, custody, clearing and settlement, accounting, valuation, intermediation and investment funds. In response, the IOSCO Board identified crypto-assets as one of its top work priorities for 2019 and 2020.


In January 2018, IOSCO issued a Statement on concerns related to Initial Coin Offerings (ICOs),  noting the risks associated with ICOs, particularly regarding parties that target retail investors through online distribution channels, often from outside the investors' home jurisdiction. Crypto-assets distributed in an ICO are highly risky investments and vulnerable to abuse and fraud.


In 2019, as the first step in developing the educational material, IOSCO´s Committee 8 on Retail Investors conducted a fact-finding survey of its members regarding crypto-assets. IOSCO acknowledges that not all of the report´s material or educational approaches may be appropriate for all member jurisdictions or consistent with all members' legal and regulatory frameworks. Instead, it recommends that members adopt the material and educational approaches best suited to their respective jurisdictions.


An Appendix to the report provides examples of IOSCO members' use of different investor activities and initiatives regarding crypto-assets. 

 Proshare Nigeria Pvt. Ltd.


Related Links

1.      Investor Education on Crypto-Assets - IOSCO

2.     Statement on concerns related to Initial Coin Offerings (ICOs) - IOSCO

3.     The World Federation Of Exchanges Responds To IOSCO's Consultation On Crypto-Asset Trading Platforms - Proshare


 Proshare Nigeria Pvt. Ltd.


Related News - BlockChain & Cryptos

1.          How Central Banks Can Catalyze Financial Inclusion Through Digital Currency

2.         Regulation of Cryptocurrency and Digital Assets In Nigeria: New Beginnings

3.         Regulating Cryptocurrency and Initial Coin Offerings: The Nigerian Perspective - Part 2

4.         Regulating Cryptocurrency and Initial Coin Offerings: The Nigerian Perspective - Part 1

5.         China Starts Major Trial of State-Run Digital Currency

6.         IOSCO Report Examines How Existing Regulatory Principles Could Apply to Stablecoins

7.         BIS: Central Bank Group To Assess Potential Cases For Central Bank Digital Currencies

8.         Demystifying Cryptocurrency - A Meristem Report

9.         FSB Sets Out Potential Financial Stability Implications from Crypto-Assets - Oct 10, 2018


Proshare Nigeria Pvt. Ltd.


Online Trading Reports & Fintech RoadMap

1.      The Future of Fintech in Nigeria: The #fintech Roadmap Committee of The Nigerian Capital Market by SEC Nigeria- Aug 30, 2019

2.     Full PDF ReportOnline Trading Ranking Report 2020 - Trading in a Period of a Virus; Building Good Habits - Sep 02, 2020

3.     News: Online Trading Ranking Report 2020 - Trading in a Period of a Virus; Building Good Habits - Sept 02, 2020

4.     Online Trading Ranking Report 2020: Review of Previous Ranking Reports - Sept 05, 2020

5.     Online Trading Ranking Report 2020: The Market - A Hawk's View - Sept 04, 2020

6.     Online Trading Ranking Report 2019 - Refining The User Experience; Trends In Digital Trading

7.     Nigerian Online Trading Portals Ranking Report 2018

8.     Nigerian Capital Market and FX Online Trading Portals Ranking Report H2 2017

9.     The Nigerian Capital Market Online Trading Portals Ranking Report H1 2017

10.  The Nigerian Online Trading Report 2016

 Proshare Nigeria Pvt. Ltd.


Related News - Tech Regulations & Govt

  1. What No One Told You about "How to Make a Million Dollars Trading Forex"
  2. Chaka Technologies Assures Investors of Funds Security following SEC IST's Restraint
  3. The Investments and Securities Tribunal Restrains Unregistered Fintech Company from Stock Trading
  4. CMA Teams up With Global Financial Innovation Network Members to Test Innovations Across Borders
  5. Stakeholders Call for Clarity in Regulation and Standardization of Nigeria's Digital Asset Market
  6. Digital Assets Classification Aimed at Investor Protection - SEC
  7. SEC Nigeria Issues Statement on Digital Assets, Their Classification and Treatment
  8. Technology Times Forum: Stakeholders Call for Holistic Approach to Data Protection


Proshare Nigeria Pvt. Ltd.

Related to IOSCO

1.            The WFE Issues Position Paper on Importance Of Valuing Stock Market Data Correctly - Jul 25, 2019

2.           Policy Challenges and Research Opportunities in the Era of Big Data

3.           Basel Committee, IOSCO Agree to 1-yr Extension of the Implementation Phase of the Margin Requirement - Jul 23, 2019

4.           Statement on IOSCO Liquidity Risk Management Recommendations For Investment Funds - Jul 18, 2019

5.           IOSCO Urges Authorities to Use Existing Standards to Address Cyber Risk - Jun 18, 2019

6.           CPMI and IOSCO Publish for Public Comment a Paper on CCP Auctions - Jun 06, 2019

7.           IOSCO Examines Market Fragmentation and Considers How to Enhance Cross-Border Co-operation - Jun 05, 2019

8.           CPMI-IOSCO Conclude That the United States Has Fully Implemented the PFMI for PSs, CSDs and SSSs - May 31, 2019

9.           IOSCO Annual Meeting in Sydney Takes Forward the IOSCO 2019 Workplan - May 30, 2019

10.        IOSCO Requests Feedback on Key Considerations for Regulating Crypto-asset Trading Platforms - May 28, 2019

11.         IOSCO Report on Behavioural Insights Seeks to Enhance Retail Investor Protection - Apr 02, 2019

12.        IOSCO Publishes First Annual Work Program To Enhance The Efficacy Of Its Work - Mar 25, 2019

13.        IOSCO Members Report Having Mostly Implemented Secondary Market Principles - Feb 12, 2019

14.        IOSCO Practices Aim To Create Robust Framework For Commodities' Storage And Delivery - Feb 07, 2019

15.        IOSCO Examines Liquidity In Corporate Bond Markets Under Stressed Conditions 


Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News