World Economic Forum urges regulators & crypto players to cooperate
The World Economic Forum (WEF) said that Crypto-related activities can’t fit into the traditional regulation framework & in some cases, this sector is a mirror of traditional finance.
The World Economic Forum (WEF) is an international non-governmental lobbying organisation for multinational companies based in Cologny, Canton of Geneva, Switzerland. This organisation was founded in 1971. Since the beginning, this organisation has contributed hugely to bringing better collaboration between the public & private sectors.
Recently the WEF organization published a Whitepaper to address the issues of conflict between the traditional financial regulation system & crypto sector.
The WEF organization stated that global cooperation is a necessary thing to regulate the crypto sector under a global framework and for this, there is a need to establish better cooperation between Global regulators, crypto market players, & policymakers.
The report noted that cryptocurrencies can’t fit in the existing traditional financial laws and sometimes cryptocurrency-related operations work opposite of the traditional financial system.
According to the WEF’s White Paper, there are some areas in the crypto sector, where a new framework is a very important need. For example anonymity provider crypto assets, self-custody crypto wallets, crypto mixing platforms,
This report successfully addresses the bad crypto regulatory approach in the United States (US) by the United States Securities and Exchange Commission (SEC).
“This approach is not recommended to build out a framework, as ‘regulation by enforcement’ precludes any meaningful discussion of what should and should not be regulated.”
White Paper noted that the majority of the financial activities in the crypto sector are based on a transparent nature, so it is possible to bring a global regulation framework easily but surely there is a huge need for cooperation across jurisdictions.
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