Get Your Crypto House In Order, World Economic Forum's Old Guard Tells Davos Debutantes

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Get your crypto house in order, old guard tells Davos debutantes

Cryptocurrency firms, many of which lined the main street in Davos this week, were told they will need to clean up their act before gaining complete acceptance from the World Economic Forum's old guard.

"The future of crypto, I'm sorry to say, looks regulated to me," said Nela Richardson, senior vice president and chief economist for human resources software provider ADP. She said she thinks central banks will step in to provide oversight.

Blockchain and crypto firms blitzed Davos with parties, briefings and panels on the sidelines of the main conference, with the hope of gaining credibility and inking deals with companies ranging from Tyson Foods Inc to Salesforce.com Inc also perched on the main street.

Some of the events outside the security cordon of the main event featured speakers from traditional financial institutions, including Perella Weinberg Partners and State Street.

But, inside the gates, there was a cry for regulation and concerns about risks from the sector, including about it being used illegally by sanctioned Russians.

"Crypto currencies have received a big push from (Russian) sanctions," Saudi finance minister Mohammed al-Jadaan said. "And I'm worried because it could be used for illicit activities."

David Rubenstein, co-founder and co-chairman of U.S. buyout firm Carlyle, shared his concerns.

"A lot of wealthy people who want to hide their assets after the Russian situation will say I will put 5% to 10% in some basket of cryptocurrencies," he said.

"The government won't know what I have, they can't get it and I can always get access to it."

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