Crypto-asset related activity, both outside and inside supervised banks, requires oversight so that people are fully aware of the risks they face. We plan to work with other bank regulatory agencies to ensure that crypto activity inside banks is well regulated, based on the principle of same risk, same activity, same regulation, regardless of the technology used for the activity.
First, regulators need to walk with the innovators. Reflecting back on the introduction of mobile phone financial services, we at CBK adopted a test and learn approach that sought to understand the business models, risks and their mitigants. This approach later developed across the world through the sandbox approach.