BIS Exec Says Defi Is A ‘Wake Up’ For Regulators, Global Crypto Policy Expected In 2022 – Bitcoin Regulation News

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Bank for International Settlements (BIS) executive Benoît Cœuré said crypto is “growing very quickly” and “is spreading in different ways.” Noting that decentralized finance (challenge) is a “wake-up call” for financial regulators, he said countries “will likely agree to a global framework for crypto next year.”

BIS official sees Defi as red flags for regulators, global policy expected next year

Benoît Coeuré, member of the BIS executive committee and currently head of the BIS Innovation Hub, spoke last week about cryptocurrency, global regulation and decentralized finance (challenge).

Coeuré was a member of the Executive Board of the European Central Bank (ECB) and held various positions in the French Treasury and in the French Debt Management Office before joining the ECB. He announced Thursday that he had been appointed head of the French Competition Authority.

The head of the BIS Innovation Hub told the Financial Times that regulators around the world have stepped up their discussions on high-level global cryptocurrency and decentralized finance policies. The publication conveyed:

Financial regulators are expected to agree on a global framework for crypto next year after the rapid growth in decentralized finance gives them a “wake-up call.”

The BIS executive noted that regulators can no longer ignore the challenge, citing that it “opens new avenues. . . for the interconnection with traditional finance which potentially creates new forms of systemic risk.

Regarding global regulation, Coeuré suggested that the Financial Stability Board (FSB) would be the most appropriate platform for regulators around the world to agree on a cohesive framework, noting that it is possible for them to do so in 2022. However, he noted that countries are taking the time to adopt new measures, meaning that “we are probably at least two or three years away from having a stable landscape at scale. world ”. The BIS executive described:

The risk in 2022 is that the large jurisdictions – [like] Europe, UK, US, [and] China – keep moving forward but on different paths and produce an overall inconsistent system.

Coeuré pointed out that countries taking different approaches to crypto would create opportunities for “regulatory arbitrage”, allowing businesses and individuals to play with the authorities by choosing the most advantageous locations for their business. He added: “It is a risk that must be avoided and there is still time to avoid it.” Referring to crypto, the BIS executive said last week:

Now that he’s growing really really fast and. . . generalize in different ways, the time has certainly come for coherent regulation.

What do you think of Benoît Coeuré’s words? Let us know in the comments section below.

Kevin helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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