Here's Why Crypto Regulation Is Urgent

The World Economic Forum has been taking place since January 16 and ends on January 20. This event, better known as the Davos Forum, takes place in Switzerland. It is organized by a non-profit foundation of the same name that was established in 1971. This year’s meeting saw the participation of many global regulators and central banks. The latter took the opportunity to talk about the crypto sector and especially bitcoin (BTC). Many of them explained why it is absolutely necessary to regulate the sector.

Regulate quickly and effectively to prevent further meltdowns

Many players in the financial world expect further shipwrecks in the crypto sector without proper regulation. A good part of the representatives of central banks and regulators at the Davos 2023 summit confirmed this. Bloomberg suggested through a tweet that bankers across the world all want bitcoin to be regulated urgently.

His post reads:Regulators and bankers may not always agree, but they find common ground at crypto-themed Davos“.

Regulators and bankers agree on the principle

Central bankers at the Davos Forum discussed among other things the evolving nature of the new industry. They argued that this nature along with the speculation that characterizes cryptos makes regulation urgent. These executives also believe that the recent collapses show the importance of regulation of the crypto sector. They then called on regulators to intervene quickly to pass the appropriate laws to manage crypto well.

François Villeroy de Galhau, member of the board of governors of the European Central Bank, made a statement on the subject. “The biggest challenge today is the non-banks. They all have one common characteristic: they are all linked to non-banks. Here we are lagging behind. It’s more difficult because it’s a very changing landscape. We should rush to urgent non-banking regulation, starting with cryptocurrencies“explained Villeroy de Galhau.

Colm Kelleher, chairman of the board of directors of UBS Group AG, also spoke about the need to regulate cryptos. He indicated that currently many crypto projects do not have an anti-money laundering system in place. He precised : “We are looking for a regulatory framework that will allow us to meet the needs of our customers“.

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