BIS Crypto Restriction Strategy Criticized: A New Threat to Global Finance?

Updated

April 22, 2025

Gambar BIS Crypto Restriction Strategy Criticized: A New Threat to Global Finance?

Jakarta, Pintu News – Christopher Perkins, President of CoinFund, recently strongly criticized the strategy proposed by the Bank for International Settlements (BIS) in regulating the crypto market. According to him, the approach taken by the BIS is not only inappropriate but also potentially dangerous.

The BIS report entitled “Cryptocurrencies and decentralized finance: functions and financial stability implications” recognizes the growing importance of cryptocurrencies with the rise of ETFs, stablecoins, and tokenized assets. However, Perkins strongly opposes the restrictive approach proposed in the crypto regulation.

Check out the full news below!

Perkins Rejects Restrictive Approach

Perkins emphasized that crypto is not communism, but a new internet that gives everyone access to financial services. He rejects comparisons of restrictive strategies similar to those used during the Cold War. In his opinion, it is impossible to control crypto any more than it is possible to control the internet itself.

Perkins also warned that artificially separating traditional finance from crypto markets could create liquidity risks. He argued that forcing a separation between the 24/7 transaction settlement capabilities of crypto markets and time-limited traditional systems could trigger the next systemic crisis.

Integration, Not Restriction

With his first-hand experience as a trader at Lehman Brothers during its collapse in 2008, Perkins suggests that the traditional financial system should be modernized to integrate with blockchain technology. He argues that capital rules should not “restrict” public blockchains, but rather encourage their use.

Perkins suggests that regulation should focus on updating legacy systems rather than isolating new technologies. He believes that this approach will not only strengthen the financial system but also expand access to financial services for more people worldwide.

A Critique of BIS Concerns

Perkins also challenged some of the other conclusions in the BIS report, particularly regarding information asymmetries in decentralized finance . He questioned the BIS’s criticism of anonymous developers in DeFi projects, pointing out that traditional financial institutions typically do not publish their developer lists either.

Additionally, Perkins responded to BIS concerns that stablecoins could cause macroeconomic instability in countries like Zimbabwe and Venezuela. He argued that if there is a demand for USD stablecoins and it helps improve conditions for someone in the developing world, it’s probably a good thing.

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