WEF publishes crypto asset regulation recommendations for government, industry
The World Economic Forum has released a white paper on crypto asset regulation, assisted by its Digital Currency Governance Consortium.
The need for regulation is urgent and cooperation is key, the paper found.Global coordination is necessary for crypto asset regulation to prevent ambiguity, regulatory arbitration and inconsistent enforcement, the paper argued.
The authors identified a range of challenges to crypto asset regulation, including the presumption of “same activity, same regulation,” claiming:The anonymity provided by crypto mixers, self-hosted wallets and decentralized exchanges also complicate regulation.
Meanwhile, increasing interconnectedness with traditional finance increases potential contagion risks from the crypto industry, which was only recently full of “turmoil.” Related: Blockchain features on WEF whitepaper as a tool to fight climate change The paper created a variety of classifications of regulatory frameworks for comparison’s sake.
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