For loan officers, an ideal regulatory framework should contain at least three basic elements. First of all, companies involved in the crypto commerce sector (i.e. exchanges, digital wallets, etc.) must have the same operating licenses as traditional banks.

The criteria for issuing such a license, among other things, for the provision of storage, exchange, transfer and payment services “must be specified”. At the same time, the “responsible bodies must be clearly named” and have clearly defined coordination mechanisms.

Second, these requirements must be tailored “to the use cases of stablecoins and large crypto assets”. The experts emphasized that “investment products and services must have the same requirements as those of securities brokers and dealers and be regulated by a securities regulator”.

They point out that regulators “from central banks to securities and banking regulators – need to work together to manage the different risks posed by different uses and changes.”

The third element proposed by Tobias Adrian, Dong He and Aditya Narain is that “the authorities should give regulated financial institutions clear requirements regarding their exposure and commitment to electronic money”.

They suggest that managers in the banking, securities, insurance and pension fund industries “should set different capital and liquidity requirements and risk limits for these asset classes, and require the requirements for risk assessment and investor suitability”.

If companies are regulated to provide custody services, the requirements associated with such efforts need to be clarified in order to address the alleged risks arising from that role, they pointed out.

They stated that “some emerging and developing countries” are exposed to “more immediate and acute risks of currency substitution by crypto assets, so-called cryptocurrencies”. As a result, “capital flow management measures against crypto must be regulated”.

They add to the proposal that “adopting established management tools to control capital flows may be more difficult as value is transferred through new tools, new channels and new investors.” Offer new services for which they are not regulated companies. “