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Global Regulators Warn of Risks in Crypto Tokenization Amid Market Divide

Global Regulators Warn of Risks in Crypto Tokenization Amid Market Divide

Author:

Global Cryptocurrency

Published:

2025-11-12 14:53:01

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BTCCSquare news:

Cryptocurrencies tied to real-world assets (RWAs) face mounting scrutiny as the International Organization of Securities Commissions (IOSCO) flags potential investor risks. While tokenization—converting traditional assets like stocks into blockchain tokens—falls under existing frameworks, its technological novelty may introduce unforeseen vulnerabilities.

Wall Street remains split on the promise of tokenized products, now aggressively marketed through online brokers. IOSCO's Tuang Lee Lim acknowledges the sector's transformative potential for asset issuance and trading, despite modest adoption. The EU securities watchdog echoes concerns over investor confusion and counterparty risks posed by third-party token issuers.

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