With regard to the rapidly increasing risks in digital marketing, the International Organization of Securities Commissions (IOSCO) has proposed some measures for its member countries to consider when deciding their policies and taxation approaches for online retail deals and marketing.

These proposed measures were written in a report published on October 12. The report focuses on the use of behavioral and gamification techniques and influencers who engage in crypto marketing, calling them “finfluencers.”

Another area the report focused on is the “digital veil”. According to IOSCO Secretary General Martin Moloney, “Digital fraudsters can hide behind a ‘digital veil’ that makes it difficult for regulators to locate, identify and take action against them.”

IOSCO, in the report, compels regulators both nationally and internationally to take seriously the risks that coexist with online marketing, especially with the recent challenges arising from the proliferation of crypto assets.

IOSCO proposed in the report that crypto product management should apply “appropriate filtering mechanisms” for the onboarding of financial consumers, as well as take responsibility for the accuracy of information delivered to potential investors on social media platforms.

It also suggested to national regulators that regulatory channels report complaints from prospects for illegal misleading promotions. Other proposed measures include crypto companies that have licensing qualifications and mandates for their online marketing staff.

Additionally, IOSCO reflected on third country regulations that state that while crypto companies provide their services to foreign clients, they must check if there are any licenses they need to have acquired in order to provide their service in the client’s respective country.

The International Organization of Securities Commissions is an association that regulates the world’s securities and futures markets. In March, it published a report that invites regulators to understand the risks involved in decentralized finance (DeFi) developments and their jurisdictions.

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