On January 20, the International Organization of Securities Commissions – IOSCO closed its consultation on the CR/08/24 report on financial influencers (‘finfluencers’). Finfluencers are transforming financial education and market accessibility for digitally native audiences. Given the importance of IOSCO’s work at the international level, Digital Currencies Governance Group (DCGG) welcomed the opportunity to respond to the consultation report and share our perspectives on this field of expanding interest.
Divergent supervisory and regulatory approaches to finfluencer activities may undermine legal clarity for market participants across jurisdictions, posing long-term risks as finfluencers have become a key channel for younger retail investors to engage with financial markets and navigate complex concepts. In order to effectively harness the benefits of finfluencer activities for investor education, we advocate for:
• Establishing clear definitions to reduce legal uncertainty;
• Promoting industry best practices and codes of conduct to position transparency and fairness at the forefront of finfluencer activities;
• Education and proportional oversight as regulatory priorities.
A balanced, innovation-friendly approach that safeguards retail investors while promoting industry education and supervisory engagement, will foster a more transparent and responsible digital finance ecosystem. We appreciate the opportunity to contribute to this discussion and look forward to IOSCO’s further developments on this matter.