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bank for international settlements: During market crises, Crypto Assets have become a means of transferring wealth from the poor to the rich.
Odaily News The bank for international settlements (BIS) has released a paper exploring the financial stability risks of crypto assets and Decentralized Finance (DeFi), which points out that although it is generally believed that the connection between crypto assets and traditional finance (TradFi) is minimal, with the issuance of Bitcoin ETF, the expansion of stablecoins, and the continuous development of the tokenization of real-world assets (RWA), the scale of the crypto asset market has reached a critical point that could trigger financial stability risks. In addition, the report from the bank for international settlements also pointed out that during market crises, small investors typically increase their exposure to crypto assets, while "wealthy" investors tend to withdraw, leading to the conclusion that the crypto asset market has become a means of transferring wealth from the poor to the rich. The Bank for International Settlements report suggests that DeFi should implement regulatory requirements similar to those of TradFi, including "Know Your Customer" compliance constraints, information disclosure, and adequate training and certification for market professionals. (LedgerInsights)