{"id":2146,"date":"2022-07-06T01:09:12","date_gmt":"2022-07-06T01:09:12","guid":{"rendered":"https:\/\/insight.thomsonreuters.com\/sea\/business\/?p=2146"},"modified":"2023-05-14T23:25:54","modified_gmt":"2023-05-14T23:25:54","slug":"cryptos-on-the-rise-a-complex-regulatory-future-emerges","status":"publish","type":"post","link":"https:\/\/insight.thomsonreuters.com\/sea\/business\/posts\/cryptos-on-the-rise-a-complex-regulatory-future-emerges","title":{"rendered":"Cryptos on the rise \u2013 a complex regulatory future emerges"},"content":{"rendered":"\n

Thomson Reuters Regulatory Intelligence has published a special report<\/a> \u201cCryptos on the rise: a complex regulatory future emerges\u201d.<\/h3>\n\n\n\n

In many countries, cryptos appear to be at a legal and regulatory tipping point. Concerns about financial stability and vulnerable customers, together with the apparently persistent misperceptions about financial crime, are driving policymakers to consider significant action. Policymakers must, however, balance these considerations with the benefits which could be derived from the more widespread adoption of cryptos.<\/p>\n\n\n\n

Other countries, meanwhile, are welcoming cryptos with seemingly few regulatory concerns. Cryptos’ borderless nature makes this even more challenging, as is evidenced by the near-overnight relocation of miners and crypto firms out of China. Most countries are reluctant to stifle innovation, but it would be politically unacceptable to deliberately risk either wholesale financial stability or widespread retail customer detriment.<\/p>\n\n\n\n

There is an urgent need for a coherent approach to the regulation and oversight of cryptos; otherwise, there is a danger that they will fail to achieve their potential, and the world will lose the considerable benefits they could bring.<\/p>\n\n\n\n

My main message today is simple: the soul of money belongs neither to a Big Tech nor to an anonymous ledger. The soul of money is trust. So, the question becomes: which institution is best-placed to generate trust? I will argue that central banks have been and continue to be the institutions best-placed to provide trust in the digital age. This is also the best way to ensure an efficient and inclusive financial system to the benefit of all.<\/p>Agust\u00edn Carstens, general manager of the Bank for International Settlements, January 2022<\/cite><\/blockquote>\n\n\n\n

Policymakers are all-too aware of the need for a coherent approach to cryptos. “Global crypto regulation should be comprehensive, consistent and coordinated,” according to the IMF.<\/p>\n\n\n\n

Specifically, the international regulatory framework should provide a level playing field along the activity and risk spectrum. The IMF believes this should have the following elements:<\/p>\n\n\n\n