The Bank for International Settlements proposes three cryptographic rules necessary for cryptocurrency laws

The need to bring the cryptocurrency industry into a regulatory framework has become one of the primary goals of financial regulators around the world, as officials from the Bank for International Settlements (BIS) have suggested.redundant) Three cryptographic rules that people working on drafting laws for the digital asset industry can take into account.

The aim of these potential cryptographic rules is to eliminate the risk sector associated with it, including volatility and opportunities for anonymous exploitation by malicious users for illegal activity such as hacking and asset theft, according to the website. Gadgets 360.

“Prohibiting Certain Crypto Activities” is the first suggestion that the Bank for International Settlements made via an official blog post, while it was not mentioned redundant The type of crypto activities that should be banned Recently, certain crypto activities have attracted the attention of global regulators. Tordano Cashfor example, to enrage financial regulators to ban their use, and scammers who steal crypto assets typically direct their stolen assets to anonymous wallets after passing them through crypto mixers.

However, note redundant Some of the issues that may come with blocking cryptographic activities, “An extreme option is to block cryptographic activities, either entirely or in a targeted manner. Implementing this option will be challenging to implement,” the blog states.

The isolation of cryptographic activity from traditional financing mechanisms (TradeFi) as the second proposal by economists redundantThey said that separating cryptocurrency from existing stock trading features would make it convenient and discoverable by fewer people.

A number of countries are concerned that cryptocurrencies, which can facilitate massive payments and cross borders instantly, could emerge as an alternative to fiat currencies and end up destabilizing global financial systems.

For the latter proposal, the Bank for International Settlements decided it was important for global financial regulators to formulate cryptocurrency laws similar to those currently governing traditional financial institutions.

The imposition of Know Your Customer (Know Your Customer) requirementsKnow your customer) and making sure that crypto companies report suspicious transactions to the authorities are some of the laws that can be imposed on the crypto sector in general among others, as some entities lack the basic accounting, corporate governance, compliance, and control functions that are a prerequisite for participating in TradeFisome intermediaries connecting between can be subjected TradeFi and cryptocurrency for regulation.”

The European Union has already approved legislation mica The long-awaited one that will work uniformly across all member states in terms of cryptographic laws.

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