Davos 2023: Banking Panel Reinforces the Need for Crypto Regulation

Davos 2023: Banking Panel Reinforces the Need for Crypto Regulation Davos 2023: Banking Panel Reinforces the Need for Crypto Regulation  0

A group of global banking experts hosted by the World Economic Forum (WEF) convened about the need for global crypto regulation, including stablecoins and unbacked crypto assets. The panel agreed there must be at least some kind of base regulation for these assets and bank-equivalent regulation for blockchain applications seeking to offer products similar to what traditional banking offers.

WEF Global Banking Panel Seeks More Crypto Regulation

Global bankers have agreed on the need for more clear regulations for cryptocurrencies. In a panel titled “Banking in the Eye of the Storm,” part of the Davos 2023 meetings of the World Economic Forum (WEF), directives of central and private banks examined the cryptocurrency market after the events that unfolded during 2022, including the fall of cryptocurrency exchange FTX.

François Villeroy de Galhau, governor of the Central Bank of France, explained that regulation for crypto markets was key for controlling the possible damage these might bring to investors in the future. Villeroy de Galhau stated:

The question is not whether we have to regulate or not… for sure we have to regulate. Some even say it’s not a question of regulating, is a question of prohibiting.

Villeroy de Galhau also pushed for the alliance of central banks and private banking institutions to partner in promoting innovation, including the adoption of CBDCs (central bank digital currencies).

The governor of the Central Bank of France also expects the implementation of the finalized Basel Committee rules in all jurisdictions, which were approved in December and offer directives for the exposure of banks to cryptocurrency assets.

A Base Level of Regulation

While all panelists agreed on the need for at least a minimal level of regulation, including anti-money laundering (AML) and know-your-customer (KYC) measures for all assets, Tharman Shanmugaratnam, senior minister of Singapore, stated that some assets would better be unregulated, clarifying the risks that investing in these assets might bring possible investors.

However, he clarified that any cryptocurrency and blockchain-based tech that aimed to offer comparable services to banks, including stablecoins, should be regulated in the same way traditional financial institutions are.

Shanmugaratnam believes the answer of banks to crypto and blockchain innovation should be the linkage of local domestic systems with today’s global payment systems, to help immigrants and SMEs, which are currently served by cryptocurrency alternatives.

Tags in this story Bank of France, banking in the eye of the storm, Basel, basel committee, CBDC, Cryptocurrency, davos 2023, François Villeroy de Galhau, panel, Payments, Singapore, Tharman Shanmugaratnam, WEF

What do you think about the opinion bankers have on cryptocurrency regulation? Tell us in the comments section below

Davos 2023: Banking Panel Reinforces the Need for Crypto Regulation  1 Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Davos 2023: Banking Panel Reinforces the Need for Crypto Regulation  2 Nexo Agrees to Pay $45 Million to SEC and State Regulators for Unregistered Offering of Earn Interest Product NEWS | 6 hours ago Davos 2023: Banking Panel Reinforces the Need for Crypto Regulation  3 1inch Network Launches Hardware Wallet for Storing Users’ Private Keys in a Secure Offline Setting NEWS | 14 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons

Previous article

Silvergate Capital Incurs Loss of $1 Billion in Q4 of 2022

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimerShow comments

More Popular News

In Case You Missed It

Davos 2023: Banking Panel Reinforces the Need for Crypto Regulation  4

Tony Hawk’s Latest NFTs to Come With Signed Physical Skateboards

Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungible token (NFT) collection via the NFT marketplace Autograph. Next week, Hawk will be auctioning the skateboards he used during his last tricks, and each of the NFTs … read more.

Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days Today’s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method


Updated: 01/20/2023 — 07:00

Leave a Reply

Your email address will not be published. Required fields are marked *

Btc news © 2021 Frontier Theme