Banking Panel at Davos in 2023 Stresses Need for Crypto Regulation

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The World Economic Forum (WEF) brought together a group of international financial experts to discuss the need for global crypto regulation, including stablecoins and unbacked crypto assets.

The panel came to the conclusion that these assets must be subject to at least some type of base regulation, as well as bank-equivalent regulation for blockchain applications looking to provide services akin to those provided by conventional banking.

More Cryptocurrency Regulation Is Wanted by WEF Global Banking Panel

Global bankers concur that cryptocurrencies require clearer laws.

The World Economic Forum (WEFDavos )’s 2023 sessions featured a panel titled “Banking in the Eye of the Storm,” where representatives from central and private banks discussed the state of the cryptocurrency sector following the events of 2022, particularly the collapse of cryptocurrency exchange FTX.

According to François Villeroy de Galhau, governor of the Central Bank of France, regulation of the cryptocurrency market is essential for limiting potential harm to investors in the future.

The Central Bank of France’s governor also anticipates that the Basel Committee’s final standards, which were agreed in December and provide guidance for banks’ exposure to digital assets, will be put into effect across all jurisdictions.

Despite the consensus among the panelists that all assets should be subject to at least a minimal level of regulation, including anti-money laundering (AML) and know-your-customer (KYC) measures, Tharman Shanmugaratnam, senior minister of Singapore, argued that some assets would be better off being unregulated in order to better communicate the risks that doing so might pose to potential investors.

He did, however, make it clear that stablecoins and any other cryptocurrency or blockchain-based technology that aspired to provide similar services to banks should be subject to the same regulations as conventional financial institutions.

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