- IOTA urges globally harmonized, risk-relevant cryptor regulation to reduce compliance costs for companies and promote innovations.
- Holey regulations and unclear standards hinder crypto companies and make global market access difficult.
Die IOTA Foundation has transmitted your feedback to the Financial Stability Board (FSB) as part of its global review of the regulation of crypto-assets. IOTA emphasized that inconsistent regulatory framework hinder the growth of the entire sector of digital assets.
The foundation warned that high costs for compliance with the regulations and unclear standards prevent start-ups from expanding their activities. The foundation pushed to harmonized, risk -based rules that promote innovations and reduce regulatory friction losses.
Fragmented regulation makes growth difficult
In its contribution, the IOTA pointed out the inconsistent regulatory landscape as a central obstacle to innovation. Countries such as the EU, Singapore and the United Arab Emirates have introduced extensive crypto framework regulations.
The #IOTA Foundation shares its perspective with the @FinStbBoard: fragmented rules, high compliance costs & unclear standards are holding back crypto innovation. It’s time for globally coordinated, tailored regulation.
Read our key points
https://t.co/5kJeJwf05T pic.twitter.com/aPrtV0QhnI
— IOTA (@iota) June 26, 2025
Die Micar Has a structured supervision that Singapore and the VAE have a governance geared towards innovation, but most regions are still subject to outdated or no financial rules.
According to IOTA, most companies opt for a governance that is based on the simplicity of the regulations and not on strategic growth. Innovators move into lax serrals, which leads to inefficiencies and market fragmentation.
In the EU, the regulations of the second level also burden small startups and distract resources from the development.
According to IOTA, countries in which the enforcement of the regulations is in the foreground, and vague legal definitions make it difficult for companies to deal with the legal obligations. The lack of standardization prevents equal access to global markets, since companies have to adapt to contradictory national requirements.
Innovation is faster than regulation
In his statement, Iota pointed out that the regulation behind the innovation in digital assets lags. As shown in our latest reporting, Defi, NFTS and tokenized assets grow quickly.
However, many regulatory authorities lack specialist knowledge or capacities to react in real time. Instead of proactive guidelines, companies receive delayed enforcement measures without clear political requirements.
According to Iota, even global standards such as the Fatf Travel Rule suffer from an inconsistent acceptance and interpretation. This inconsistency creates further hurdles for compliance with the regulations, especially for companies with cross -border activities. In order to reduce friction losses, common principles must be supplemented by a coordinated implementation.
The IOTA also expressed concerns about the systemic risks that result from the restoration and interconnectivity of platforms. These trends increase susceptibility to different protocols and potentially increase systemic weaknesses.
Centralized stock exchanges and storage points are weak points, especially if they work without transparency or sufficient governance structures.
Coordinated and proportionate regulation required
The most important recommendation of the IOTA is a coordinated and tailor -made regulation worldwide. A uniform approach would reduce double work in compliance with regulations and create the same competitive conditions.
According to the foundation, a distinction should be made between centralized and decentralized services in the regulation. A flat -rate model would not do justice to the different risk profiles within the ecosystem, according to the foundation.
The foundation supported a proportionate, risk-based regulatory strategy that is based on the FATF guidelines. She explained that such an approach would reduce unnecessary loads, especially for startups that drive innovations, but are faced with high entry barriers under the current rules.
The regulatory framework of the FSB, which was published in response to the contributions in the industry, is in line with this principle. He demands the same regulation for the same risk, regardless of the type of activity.
The FSB also supports cross -border cooperation, the functional separation of platforms and a proportionate supervision. A global review of the implementation progress is planned for the end of 2025.
In parallel to its political commitment, the IOTA is expanding its presence in Great Britain. How CNF reportedis the foundation CryptoUKjoinedto support the political framework of the state for digital assets.
The twin platform from IOTA is currently being tested in the British government trading systems and enables data exchange in real time. Position these developments IOTA at the center of both technological and regulatory progress in the digital economy of the UK.
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