BIS Economists Recommend 3 Crypto Policies for Regulators Worldwide to Adopt 
Economists at the Bank of International Settlements (BIS) have recommended three policies regulators worldwide could adopt in order to deal with the risks posed by cryptocurrencies. “Authorities can now consider a variety of policy approaches and at the same time work to improve the existing monetary system in the public interest,” they advised.
BIS Economists Discuss Crypto Policies
The Bank of International Settlements (BIS) published a bulletin last week titled “Addressing the risks in crypto: laying out the options.”
Authored by BIS economists Matteo Aquilina, Jon Frost, and Andreas Schrimpf, the report discusses the risks associated with cryptocurrencies and the various options available to regulators and central banks for addressing these risks.
The authors outlined “three potential lines of action.” The first is to “ban specific crypto activities.” Another option is to “isolate crypto from tradfi [traditional finance] and the real economy.” The third is to “regulate the sector in a manner akin to tradfi.” However, the report clarifies that the three options are not mutually exclusive and could be “selectively combined to mitigate the risks emanating from crypto activities.”
While noting that crypto markets “have experienced a remarkable series of booms and busts, often resulting in large losses for investors,” the BIS economists concluded that “these failures have so far not spilled over to the traditional financial system or the real economy.” Nonetheless, they cautioned:
There is no assurance that they will not do so in the future, as defi (decentralized finance) and tradfi become more intertwined.
“Authorities can now consider a variety of policy approaches and at the same time work to improve the existing monetary system in the public interest,” the BIS report concludes.
Tags in this story BIS, bis bitcoin, bis crypto, bis cryptocurrency, BIS economists, crypto risks
What do you think about the BIS economists’ crypto-policy recommendations? Let us know in the comments section below.
Kevin Helms
Former SEC Official’s Crypto Warning: Regulatory Onslaught Is Just Beginning REGULATION | 2 hours ago 
Authorities in Germany, Bulgaria, Serbia, Cyprus Take Down Crypto Scam Network REGULATION | 1 day ago
Image Credits: Shutterstock, Pixabay, Wiki Commons
Previous article
Former SEC Official’s Crypto Warning: Regulatory Onslaught Is Just Beginning
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Read disclaimerShow comments
More Popular News
In Case You Missed It
Ripple CEO: SEC Lawsuit Over XRP ‘Has Gone Exceedingly Well’
The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP “has gone exceedingly well.” He stressed: “This case is important, not just for Ripple, it’s … read more.
Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design Ethereum Foundation’s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether