Crypto Community Warns BIS Approach May Do More Harm Than Good
The Bank for International Settlements (BIS) has come under fire from the crypto industry for its recent push to isolate digital assets from traditional finance.
Christopher Perkins, president of CoinFund, called the BIS’s latest report not only outdated but potentially dangerous to the stability of global markets.
According to Perkins, the BIS misunderstands the nature of crypto and DeFi, viewing them as threats rather than innovations. He warned that efforts to “contain” digital finance could backfire, exposing traditional systems to massive liquidity mismatches. “You can’t box in crypto any more than you can fence off the internet,” he argued.
One of his biggest concerns lies in the BIS’s failure to acknowledge crypto’s 24/7, real-time nature—something that sharply contrasts with the limited hours and slower infrastructure of legacy finance. Trying to wall off these two ecosystems, he believes, increases the risk of disruption rather than reducing it.
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Perkins also dismissed criticisms around DeFi’s transparency, anonymity, and developer accountability. He pointed out the irony of demanding full disclosures from DeFi developers while private institutions often operate behind closed doors with far less scrutiny.
As for the BIS’s warnings about stablecoins potentially destabilizing fragile economies, Perkins took a different view—arguing that if dollar-backed digital assets are improving financial access in places like Venezuela or Zimbabwe, then they may be part of the solution, not the problem.
Joining the criticism, Lightspark’s Christian Catalini likened the BIS report to applying outdated rules to futuristic systems, saying it’s akin to writing traffic laws for drones based on parking meters.
As the tension between regulators and innovators continues to grow, voices from the crypto world are making it clear: outdated frameworks can’t govern technologies they barely understand.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
