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BIS releases report: Strengthening regulation is needed as the scale of crypto assets and Decentralized Finance expands.
Gate.io News bot message, the latest report released by the bank for international settlements (BIS) shows that crypto assets and Decentralized Finance (DeFi) have reached a "critical scale". The report points out that the launch of Bitcoin Spot ETF, the expansion of the stablecoin market, and the tokenization of real assets are deepening the connection between the crypto market and TradFi.
The report specifically mentions that during market downturns, small investors increase their investment positions, while wealthy investors choose to exit the market early, leading to a widening wealth distribution gap.
In response to these situations, the BIS proposed a "containment" strategy, requiring the inclusion of DeFi within compliance frameworks such as KYC and information disclosure. At the same time, the BIS called for in-depth research on topics such as DAO governance, stablecoin risks, and the "crypto-ization" of emerging markets. (Source: LedgerInsights)