People’s Bank of China Stresses on Global Regulation for Crypto and DeFi Markets China’s central bank
has called on global financial authorities to regulate the digital asset and decentralized finance (DeFi) markets in its recent financial stability report.
The People’s Bank of China
released a report on Dec 22 highlighting a regulatory pathway for local and international financial watchdogs to roll out new rules, and policies in a bid to protect investors
and all stakeholders in the market. According to the report,
virtual assets account for 1% of the world’s entire financial market with a limited relationship with traditional finance, analysts wrote while seeking a global approach to stability. However,
several commentators have opined that traditional finance will get more exposed to digital assets in the coming years as more products become mainstream in finance. A notable example is the tokenization of real-world assets currently spearheaded
by large financial institutions deploying blockchains as technical solutions.
Also,
the inflow of institutional investors in the market through wealth managers and digital asset funds is a major sign of a strong future partnership between both players.
