Bank for International Settlements Says Global Regulations for Crypto and DeFi Should Be Discussed for Next Year: Report

0
94

A high-ranking official at the Bank for International Settlements (BIS) is reportedly calling on financial regulators around the globe to agree on an international regulatory framework for cryptocurrencies next year.

Benoît Cœuré, head of the BIS’ innovation hub, tells the Financial Times that the explosion of decentralized finance (DeFi) has created a “compelling reason” to establish global principles for crypto regulation.

Cœuré, a French economist, says DeFi’s potential interconnectedness with the traditional financial system generates new forms of systemic risk.

He says the Financial Stability Board (FSB), an international body that monitors and makes recommendations about the global financial system, would be a good place to start building a worldwide framework for crypto regulations. He thinks finance ministers could agree on a such framework sometime next year.

Cœuré says the framework should classify whether stablecoins are electronic money, securities or money market funds. He also supports banning pension funds from investing in cryptocurrencies.

Cœuré explains,

“[Investing in crypto] seems to be contrary to the kind of safety that you expect from a pension fund.”

The economist also notes that recently, there has been an increase in conversations about establishing a global crypto regulatory framework.

“Now that it is really growing very fast and… becoming mainstream in different ways, then certainly the time for consistent regulation has come.”

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp
Check Latest News Headlines

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Agor2012/LongQuattro


Credit: Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here