Explanation:
The Bali Fintech Agenda (BFA) emphasizes a risk-based approach to regulation. Once risks have been assessed, regulators are advised to:
In this case, since centralized crypto exchanges are identified as the most significant risk, the next step should involve prioritizing them for targeted regulatory actions rather than adopting a broad, blanket approach.
A is incorrect: While comprehensive regulation may eventually be necessary, implementing it immediately across all crypto activities could divert resources from addressing the most pressing risks (centralized exchanges in this case).
C is incorrect: Although this step is important, it comes after setting regulatory priorities. Identifying and prioritizing key risks ensures the analysis is focused on the most critical issues.
D is incorrect: Developing technical standards is a specialized task that comes later in the regulatory process. It is not the immediate next step after assessing risks.
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Q.6424 A financial regulator, following the Bali Fintech Agenda (BFA), has completed a risk assessment and identified centralized crypto exchanges as the most significant risk to consumer protection. According to the BFA, the next step the regulator should take is:
A
Immediately implement comprehensive regulations for all crypto activities.
B
Determine regulatory priorities based on the assessed risks.
C
Conduct a cost-benefit analysis of different regulatory approaches for exchanges.
D
Develop detailed technical standards for blockchain infrastructure used by exchanges.
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