The Bank for International Settlements (BIS) has put forward three stances towards the cryptocurrency market, including the option to “completely ban the entire industry.”
In the 9-page report on addressing risks in crypto, released Thursday by the Bank for International Settlements, Three different attitudes towards the cryptocurrency market revealed. in the report to organise, control under to take or ban the industry altogether approaches have been suggested.
Each approach your advantages as well as disadvantages Explaining that, the institution stated that different situations can be reacted with different attitudes. Citing the overall risk situation of centralized exchanges and the crypto industry, however, the BIS mainstream adoption of the crypto industry He said it was difficult.
Saying that they are familiar with the risks in cryptocurrencies from similar risks in traditional finance, the BIS report, on the other hand, high leverage, liquidity, maturity mismatches and from important information skewness claimed that the risks arising from crypto are greater in crypto.
Knowing that banning cryptocurrencies would be seen as an extreme option, BIS argued that some decentralized exchanges and platforms should be banned strictly. In another more moderate option, the crypto sector isolated from the traditional financial economy BIS, which recommends putting it into a more controlled flow with robust regulations, of the crashes in the past year. stressed the need to learn.
Although the BIS proposes to separate the traditional finance and crypto industry, the details of the statement read “blockchain technology” can be used to improve and move traditional finance forward. to the description added.