BIS continued to warn that crypto data could be “manipulated or distorted”.
The Bank for International Settlements (BIS) has unveiled a new platform it calls “Project Atlas”. The decentralized finance data platform will play a key role in the future regulation of crypto market participants, according to Wednesday’s announcement.
In a joint report with the Dutch and German central banks, the BIS confirmed that Project Atlas, which is merely a proof of concept for now, was used to track significant off-chain international flows between crypto exchanges. Is.
Speaking about the project, BIS Innovation Hub Chair, Cecilia Skingsley, said that Atlas will serve central banks globally. He also highlighted the importance of cross-border flow data, particularly for areas related to payments and macroeconomic analysis. Part of his statement follows:
“Although relatively small compared to total on-chain network traffic, the flows identified between crypto exchanges are economically significant and substantial.”
BIS reveals plan to use Project Atlas to improve crypto market regulation
For now, Atlas has only been used to look at transactions on the Bitcoin network, but expectations for the project remain high. According to BIS, its outcome could lay the foundation for the initial review and drafting of data reporting requirements. It could also become the basis on which regulation of crypto market participants is built.
Interestingly, BIS had been Push From June 2022 it will be called a “cryptocurrency market intelligence platform”. At the time, the bank expressed concern over the fact that many unregulated actors exist in shady crypto markets. However, in light of recent crises such as Fall of FTX ExchangeBIS’s fears may be justified.
As per the current report, BIS continues to warn that crypto data could be “manipulated or distorted”. To illustrate his point, he claimed that around 70% of the activity on some exchanges is wash trading. That is, a form of market manipulation where the same traders buy and sell the same asset. They do this just to create a false impression of market activity.
For what it’s worth though, major centralized exchanges like Binance are striving for transparency. They continue to address these concerns by publishing details of the wallets they control. According to BIS, in the future it “could be used for new methods of data-driven supervision”.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his writing style. He strongly believes in the potential of digital assets and takes every opportunity to reiterate it. He is also a reader, a researcher, an astute speaker and a budding entrepreneur. However, away from crypto, Mayowa’s imaginary distractions include discussing football or world politics.
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