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News

Bank For International Settlements (BIS) Advocates Smart Crypto Regulation Over Total Ban

August 22, 2023 - Around 2 mins mins to read

Key Points:

  • The Bank for International Settlements (BIS) in Basel advocates regulated growth for the crypto industry instead of an outright ban, citing the amplification of financial risks in less developed economies by encrypted assets.
  • BIS highlights the need for smart regulation to guide crypto innovation toward socially beneficial applications, aiming to strike a balance between encouraging progress and ensuring ethical compliance, while addressing the complexities of enforcement and stifling innovation.
In a recent research publication, the Bank for International Settlements (BIS), headquartered in Basel, has shed light on its stance regarding cryptocurrency regulation.
Bank For International Settlements Advocates Smart Crypto Regulation Over Total Ban

Contrary to a blanket ban, the BIS emphasizes that regulating the crypto industry is the preferable approach to harnessing its potential while mitigating associated risks. The study highlights the amplification of financial risks in less developed economies posed by encrypted assets.

The BIS research underscores the paradoxical nature of encrypted assets. Rather than diminishing financial risks, they have intensified challenges in certain economies. However, the BIS emphasizes the versatility of blockchain technology, suggesting its application in various constructive ways.

The report stresses that effective regulation can steer crypto innovation toward socially beneficial directions. Striking a balance between encouraging innovation and enforcing compliance is vital to avoid stifling growth while ensuring the industry operates within ethical boundaries.

Enforcement hurdles and the risk of stifling technological advancement underpin the Bank For International Settlements’s endorsement of regulation over outright prohibition. Global organizations’ skepticism toward cryptocurrencies has persisted. In July, the BIS asserted that cryptocurrencies cannot function as effective forms of money due to their “inherent flaws.” Additionally, the United Nations’ development arm proposed sweeping restrictions to address risks tied to tax collection and monetary policy in emerging economies.

The Bank For International Settlements’s nuanced perspective recognizes both the potential and challenges that cryptocurrencies present. By advocating for smart regulation, it aims to create a framework that enables responsible innovation while safeguarding the interests of economies and their financial systems.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Chubbi

Coincu News

News

Bank For International Settlements (BIS) Advocates Smart Crypto Regulation Over Total Ban

Key Points:

  • The Bank for International Settlements (BIS) in Basel advocates regulated growth for the crypto industry instead of an outright ban, citing the amplification of financial risks in less developed economies by encrypted assets.
  • BIS highlights the need for smart regulation to guide crypto innovation toward socially beneficial applications, aiming to strike a balance between encouraging progress and ensuring ethical compliance, while addressing the complexities of enforcement and stifling innovation.
In a recent research publication, the Bank for International Settlements (BIS), headquartered in Basel, has shed light on its stance regarding cryptocurrency regulation.
Bank For International Settlements Advocates Smart Crypto Regulation Over Total Ban

Contrary to a blanket ban, the BIS emphasizes that regulating the crypto industry is the preferable approach to harnessing its potential while mitigating associated risks. The study highlights the amplification of financial risks in less developed economies posed by encrypted assets.

The BIS research underscores the paradoxical nature of encrypted assets. Rather than diminishing financial risks, they have intensified challenges in certain economies. However, the BIS emphasizes the versatility of blockchain technology, suggesting its application in various constructive ways.

The report stresses that effective regulation can steer crypto innovation toward socially beneficial directions. Striking a balance between encouraging innovation and enforcing compliance is vital to avoid stifling growth while ensuring the industry operates within ethical boundaries.

Enforcement hurdles and the risk of stifling technological advancement underpin the Bank For International Settlements’s endorsement of regulation over outright prohibition. Global organizations’ skepticism toward cryptocurrencies has persisted. In July, the BIS asserted that cryptocurrencies cannot function as effective forms of money due to their “inherent flaws.” Additionally, the United Nations’ development arm proposed sweeping restrictions to address risks tied to tax collection and monetary policy in emerging economies.

The Bank For International Settlements’s nuanced perspective recognizes both the potential and challenges that cryptocurrencies present. By advocating for smart regulation, it aims to create a framework that enables responsible innovation while safeguarding the interests of economies and their financial systems.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Chubbi

Coincu News