World Economic Forum Calls for Global Regulation of Cryptocurrencies
The World Economic Forum (WEF), known by its annual meetings in Switzerland’s Davos, is taking a somewhat surprising stance by issuing recommendations for the regulation of digital assets, including cryptocurrencies . While traditionally not crypto-friendly , the WEF recognizes the need for comprehensive global coordination in the regulation of these assets .
The World Economic Forum (WEF), known by its annual meetings in Switzerland’s Davos, is taking a somewhat surprising stance by issuing recommendations for the regulation of digital assets, including cryptocurrencies . While traditionally not crypto-friendly , the WEF recognizes the need for comprehensive global coordination in the regulation of these assets .
WEF Proposes Globalist Approach to Crypto Regulation
In a white paper published on May 25, 2023, the WEF, in collaboration with its Digital Currency Governance Consortium (DCGC), presents its vision for the regulation of cryptocurrencies . The organization suggests that coordination between jurisdictions is crucial due to the unique characteristics and limitless opportunities presented by cryptocurrencies .
Challenges of Regulating Decentralized Cryptocurrencies
The WEF acknowledges the decentralized nature of cryptocurrencies, stressing the absence of costly, slow and potentially censorious intermediaries . The current regulatory approach, which is activity-based and focused on intermediaries, often fails to account for the distinctive aspects of the crypto ecosystem . That’s why some crypto companies had to close shop and move to abroad in the United States .
Furthermore the WEF emphasizes that the United States’ hostile regulatory stance against cryptocurrencies may hinder innovation and create uncertainty . While coercive law enforcement measures are necessary to address fraud and market manipulation, the WEF argues against an overly aggressive approach that suppresses meaningful discussions on regulation .
As global discussions on crypto regulation continue, the WEF’s recommendations aim to foster collaboration between regulators and industry players while promoting certainty and predictability for crypto-related activities . The call for global regulation reflects a shifting perspective within the WEF that signal the recognition of the transformative potential of cryptocurrencies in the global economy .
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