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BIS Exec Declares Defi a ‘Wake Up Call’ for Regulators. Global Crypto Policy Expected to be in 2022

Benoit Coeure (Bank of International Settlements) says crypto is growing fast and becoming mainstream in many ways. He said that countries are likely to agree on a global crypto framework next year.

A BIS Officer Sees the Defi as a Wake Up Call for Regulators, Expected Global Policy Next Year
Benoit Coeure (a member of BIS Executive Committee) spoke last week about cryptocurrency, global regulation and decentralized financing (defi).

Coeure was a member the European Central Bank’s Executive Board. He also served in various positions at France’s Treasury and the French Debt Management Office before joining the ECB. He announced Thursday that France’s competition authority has been nominated for him.

According to the BIS Innovation Hub chief, regulators around the world have intensified discussions about high-level global policies regarding cryptocurrency and decentralized financing. The publication stated:

After the rapid growth in decentralized finance, financial regulators are expected to agree on a global crypto framework next year.

BIS executive said that regulators cannot ignore defi anymore, citing that it “opens up new avenues. . . interconnectedness with traditional finance, which can create new forms of systemic risks

Coeure suggested that the Financial Stability Board would be the best platform for global regulators to reach an agreement on a common framework. He also noted that they could do it in 2022.. He noted, however, that it takes time for countries to adopt new measures. This means that we are likely at least two or three more years from having a stable global landscape. The executive of the BIS described:

The danger in 2022 lies in large jurisdictions [like] Europe and the U.K, as well as the U.S. and [and] China — that continue to move along divergent tracks, creating a system that is inconsistent across the globe.

Coeure said that different countries’ approaches to crypto could lead to “regulatory arbitrage,” which allows individuals and companies to play authorities by choosing the best places for their businesses. Coeure stated, “That’s an opportunity that should be avoided, and there’s still some time to avoid it.” Last week, the BIS executive spoke out about crypto:

It is growing fast now, and it’s. . . If these are becoming more mainstream in many ways, then it is time to regulate them all.

What did you think of Benoit Coeure’s comments? Comment below to let us know your thoughts about Benoit Coeure’s comments.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since then. His interests include Bitcoin security, open source systems, network effects, and the intersection of cryptography and economics.

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Henry Hicks
Henry Hickshttps://nonfungibletalk.com
NFT and Crypto Enthusiast. Loves Travelling and Exploring the Metaverse!
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