The head of the innovation center of the Bank for International Settlements, Benoit Köré, announced the need to develop regulatory rules for the DeFi industry, which should apply in all jurisdictions.
Speaking to the Financial Times, Benoît Cœuré said regulators should harmonize these international rules as early as next year. He is concerned that the too rapid development of the decentralized finance sector has become a “wake-up call” signaling the need to establish oversight of cryptocurrencies as soon as possible. DeFi not only opens up new opportunities, but also creates new systemic risks that regulators can no longer ignore, Köre said.
“DeFi projects will become serious competitors for banks and traditional finance, and money will flow from one ‘universe’ to another. This becomes a significant reason for discussing and creating international principles for regulating the cryptocurrency industry, ”said the head of the BIS innovation center.
He added that different jurisdictions are not moving quickly enough to resolve this issue, and each at its own pace. In addition, each country has its own privacy requirements. Therefore, there is a great risk that the regulatory framework of different countries may not comply with international requirements for cryptocurrency activities, and this will limit their effect. According to Köré, the European Financial Stability Board (FSB) could become the body that controls this international structure.
“There are risks that need to be prevented, and we still have time to avoid them. Uniform rules created by sovereign states will help find a balance between the development of the latest technologies and the stable functioning of the financial system. Given the importance of technology, this balance is now shifting in their favor. The new threat is that governments are setting up technological barriers, thereby breaking the world’s monetary system apart, ”said Køre.
Köré previously said that central bank digital currencies could be the best use for digital assets as they provide the public with broad access to banking services.

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