@BOMBERuss 28 September 2022

The Proof-of-Stake (#PoS) consensus algorithm can lead to "excessive concentration of decision-making powers in the hands of crypto exchanges and custodial service providers with risks to the integrity of markets. This was stated by the IMF in a study on the regulation of the industry. Experts offered their ideas regarding changes in the regulatory #framework that could limit the risks associated with digital assets. The document states "the need for supervisory authorities to follow a technology-neutral approach, taking into account the regulatory consequences of various forms of technology." The report also calls on the SPS to step up its activities, as this body is "able to take a leading role in coordinating and setting global standards to support national regulation of crypto assets." Experts concluded that "digital assets have not acquired systemic importance for global financial stability, but their impact in some countries has already become noticeable." The latter manifested itself in an increase in the correlation between cryptocurrencies and traditional financial instruments during periods of market stress. The IMF suggested that regulators license and authorize "key centralized organizations performing basic functions." The authorities were also recommended to consider the risks associated with "volatility, market awareness, product knowledge and understanding of cryptocurrency usage scenarios." Experts stressed the need for international coordination in building standards of supervision over the industry. Priority should be given to "building trust, not holding back innovation," they concluded. #CryptoCurrency