SMFSC Consults on Rules for Crypto Trading Platforms

Council Opens Consultation on Crypto Market Oversight Framework

The San Marino Financial Standard Council (SMFSC) has announced the launch of a new consultation phase seeking public and industry feedback on the regulation of cryptoasset trading platforms, marking a major step forward in its ongoing Road to Regulation initiative.

This initiative, first unveiled earlier this year, forms part of SMFSC’s long-term commitment to building a transparent, secure, and responsible digital asset ecosystem. The new phase aims to gather perspectives from exchanges, investors, technology providers, and financial experts before finalizing a framework that balances innovation with investor protection.

Toward a Transparent and Accountable Crypto Sector

SMFSC’s consultation focuses on establishing clear operational and compliance standards for cryptoasset trading platforms, many of which have grown rapidly but remain unevenly regulated across jurisdictions.

Under the proposed framework, the council is exploring several key areas:

• Licensing and registration requirements for trading platforms operating within San Marino’s jurisdiction.
  
• Capital adequacy and risk management standards to protect user funds.
  
• Transparency obligations, including disclosure of trading volumes, liquidity sources, and conflicts of interest.
  
• Robust anti-money laundering (AML) measures consistent with international norms.
  

The council emphasized that its approach is principles-based rather than prescriptive, designed to encourage innovation while preventing fraud and market manipulation.

Balancing Innovation and Investor Confidence

SMFSC’s ongoing work reflects its broader mission to foster trust and accountability within modern finance.
While the rise of digital asset markets has created new opportunities for efficiency and inclusion, it has also introduced regulatory and ethical challenges.

In a statement accompanying the consultation, an SMFSC spokesperson said:

“Our goal is not to stifle innovation, but to ensure that it operates within a framework of fairness, transparency, and integrity. By engaging directly with the industry, we can develop rules that both protect investors and promote responsible growth.”

Next Steps in the Road to Regulation

Following the consultation period, SMFSC will publish a summary of responses and outline its next actions toward establishing a comprehensive regulatory framework for digital assets.
The council expects to refine specific requirements for crypto exchanges and custodial service providers in the next stage of its regulatory roadmap, alongside plans for cross-border cooperation and data-sharing initiatives with other financial authorities.

This phased approach ensures that regulation evolves gradually and collaboratively, aligning with international best practices and technological realities.

A Milestone for Responsible Self-Regulation

As a self-regulatory body based in San Marino, SMFSC continues to champion ethical governance and financial transparency.
Its Road to Regulation initiative not only positions San Marino as a pioneer in responsible crypto oversight, but also demonstrates how smaller jurisdictions can contribute meaningfully to global financial reform through collaboration, consultation, and self-discipline.

By seeking open dialogue and evidence-based policymaking, SMFSC aims to shape a trustworthy and resilient crypto marketplace—one that supports innovation without compromising integrity.