Bank for International Settlements (BIS) Benoit Coeure, head of the innovation department, made important statements about the regulations in the crypto money sector in his statement recently.
In an interview with The Financial Times, Coeure admitted that global regulations covering cryptocurrencies are now coming to an end. Coeure stated that he expects these to be ready before the end of 2022.
Cryptocurrency Regulations at the Door
The senior executive underlined that when cryptocurrencies rapidly reach mainstream adoption, it is essential to have crypto-currency regulations covering them. Coeure, who is also a former board member of the European Central Bank, emphasized that the decentralized finance sector has achieved incredible growth and that if it is not regulated, it can cause losses.
Expressing that traditional finance is now under this risk, the senior executive thinks that systematic risks can only be eliminated with regulations.
In addition, the senior French economist stated that other “measures” will be taken besides cryptocurrency regulations. Stating that there is still a little time for these regulations to come, the famous name said that the latest decisions of sovereign countries may prevent those looking for arbitrage opportunities.
This statement, of course, aims to prevent some investors from escaping from regulated countries while preferring non-regulated countries. Coeure stated that it is very important for all sovereign states to have common regulation precisely for this reason. The scope of these regulations can definitely shake the sector.