<ul><li>The Bank for International Settlements (BIS) has warned that the crypto and DeFi sector has reached a critical mass and poses risks to global financial stability.</li><li>The BIS report highlights concerns about widening wealth gap due to crypto, as retail investors are more active during market downturns compared to big players.</li><li>The report identifies four main pathways through which crypto and DeFi could affect the global financial system, including direct exposure of financial institutions to crypto assets and bypassing traditional systems for transactions with digital assets.</li><li>The BIS recommends that the DeFi sector comply with regulations, such as implementing Know Your Customer (KYC), data transparency, and stricter risk management.</li></ul>

Crypto and DeFi Hit Critical Mass, BIS Sounds the Alarm

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