Cripto, Defi can expand Map in wealth, destabilize the finances: BIS report

The growing adoption of the cryptogram can represent risks to the traditional financial system and worsen inequality of wealth, in accordance with banks for international settlements (BIS).

At 15. April reportBIS warned that it was Number of investors and the amount of capital in crypto and decentralized finance (defi) they “reached a critical mass”, and the protection of investors became “significant concern for regulators”.

The size of the crypt market signals that the authorities should be concerned about the “crattural stability in the role,” the report said, emphasizing the role of Stablecoin, which would say that they would “become funds through crypto”.

The report requires a targeted stability stability regulation and the reserve requirements of property that will guarantee purchase of stablecoin for US dollars during “accentuated market conditions”.

Related: Spar supermarket in Switzerland begins to accept Bitcoin payments

Report comes two weeks after The US Financial Services Committee adopted the transparency of stability and responsibility for a better main economy, or a stable act, with 2 April from 32-17.

The permanent act aims to create a clear regulatory framework for paying dollar payments, emphasizing transparency and consumer protection.

13. Marta, Genius acts, short for conducting and establishing national innovation for American stablecoins, passed Senate Banking Committee 18-6. The law on establishing collateral guidelines and requires complete compliance with money laundering laws from Stablecoin publishers.

Related: Web3 $ 400 million Investment Fund ABCDE stops new investments, fundraising

Crypto can worsen the big gap in wealth

The BIS also collected about how the crypto markets can deteriorate income inequality enabling larger investors to use the emotions of less sophisticated retail participants, as seen during the FTX collapse 2022. Years.

“As the prices decreased 2022. years, users actually traded more,” the BIS report noted. “The most testimous, big carrier Bitcoin (” whales “) were sold as ordinary retail investors (” Krill “) buy.” Added:

“This means that the crypto market, which is often presented as an opportunity for inclusive growth and financial stability, can be funds for redistributing the wealth of poorer to richer.”

The report concludes that defio and tradi have similar basic economic drivers, but definitive characteristics “such as” smart contract and composibility “,” represent new challenges that need proactive regulatory intervention “in protection of financial stability” by pushing innovation. “

https://www.youtube.com/vatch? v = kkzhvt77kkv

Journal: Uni students Cripto ‘scraping’ Scandal, 67K cheated by fake women: Asia Express