The regulatory approach should target digital currency exchanges as the existing legal provisions cover trading venue operations.

“After all, the main rationale for our supervision, underpinned by our legal mandate, is to safeguard the integrity and resilience of the financial system. The exchanges where cryptos are bought and sold are where the ‘new’ and the ‘old’ financial systems overlap, and where we will focus our supervisory efforts.”

Central banks around the world can use the crypto framework of the Financial Stability Board, Knot noted. The Dutch central bank president headed the FSB Committee that published a special virtual asset report last week.