Crypto, DeFi may widen wealth gap, destabilize finance: BIS report

The growing adoption of cryptocurrencies may pose risks to the traditional financial system and exacerbate wealth inequality, according to the Bank for International Settlements (BIS).

In an April 15 report, the BIS warned that the number of investors and amount of capital in crypto and decentralized finance (DeFi) have “reached a critical mass,” with investor protection becoming a “significant concern for regulators.”

The size of the crypto market signals that authorities should be worried about the “stability of crypto over and above the…