| dc.description.abstract | The market for crypto assets is growing rapidly and could pose a threat to global financial stability due to its growing size, structural fragility and increasing interconnectedness with the traditional financial system. Rapid market evolution and international nature also increase the potential for regulatory gaps, fragmentation or arbitrage. While the extent and nature of crypto assets use varies across jurisdictions, financial stability risks can escalate quickly. Therefore, a timely assessment of possible policy responses is needed.
The paper first reviews the characteristics and potential risks of crypto assets to understand the current regulatory mechanisms for crypto assets in many countries, and discusses the current legal issues in the field of crypto assets. Finally, suggestions on the supervision and protection mechanism of crypto assets are put forward for the competent authorities, crypto asset service providers and crypto asset users in order to design a regulatory approach that can adapt to the characteristics of the crypto asset market, properly control risks, and achieve regulatory objectives. At the same time, an environment conducive to industrial development and protection of investors and consumers.
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