IMF: The Concentration of Control From Exchanges in PoS Networks Poses Risks

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According to a study conducted by the International Monetary Fund (IMF) on the regulation of the industry, the Proof-of-Stake (PoS) consensus algorithm could lead to “an excessive concentration of decision-making power in the hands of crypto exchanges and custodial service providers, with risks to market integrity.”

The experts of the organization have offered their ideas regarding changes in the regulatory framework that could limit the risks associated with digital assets.

The document states “the need for regulators to follow a technology-neutral approach, taking into account the regulatory implications of various forms of technology.”