Regulating Bitcoin: WEF2020 Announced A Global Consortium For Cryptocurrency Governance
The World Economic Forum (WEF) in Davos, Switzerland, ended yesterday with a significant mark on the cryptocurrency market. On the last day, WEF announced the first global consortium focused on designing a framework for the governance of digital currencies, including stablecoins.
Global Consortium For Digital Currency Governance
The World Economic Forum for 2020 took place at Davos the past week, and cryptocurrencies received a lot of attention. Yesterday, during its last day, the Forum announced the creation of the first Global Consortium for Digital Currency Governance. It will consist of financial institutions, government representatives, academics, international organizations, leading companies, technical experts, NGOs, and members of the Forum’s communities on a global level.
The report indicates that if digital currencies are to receive proper financial inclusion, they need to be “paired with good governance.” Therefore, the Consortium’s purpose will be to establish a framework of regulations by implementing innovative approaches. To achieve their goal, the participants will use “efficiency, speed, inter-operability, inclusivity, and transparency.”
The Consortium will work with both the public and the private sectors to explore the presented opportunities.
According to Klaus Schwab, Founder and Executive Chairman of the WEF, “digital currency, a cross-cutting topic that requires input across sectors, functions, and geographies, is a key area of interest for the Forum.”
Mark Carney, Governor of the Bank of England, also spoke on the matter:
“Governance is the core pillar of any form of digital currency. It is critical that any framework on digital currencies ensures security, efficiency, and legitimacy of payments while ensuring fair and open competition. We welcome the WEF’s platform to help develop a robust governance framework for inclusion through digital currencies.”
Regulations Across The Board
As CryptoPotato recently reported, the efforts of establishing regulations on the cryptocurrency market are getting more and more serious. As of January 10th, the European Union introduced an updated version of its 5th Anti-Money Laundering Directive (5AMLD) with increased regulatory focus.
All cryptocurrency-related businesses operating from Europe have to follow the rules. They include a more in-depth Know-Your-Customer process, transaction monitoring, and filing suspicious activity reports (SARs) with law enforcement.
One of the aftermaths came shortly, as the popular exchange Deribit announced its upcoming relocation from the Netherlands to Panama.
With the creation of the Global Consortium, world watchdogs will try to establish a framework of regulations on cryptocurrencies. It’s particularly interesting to see whether this will be beneficial for the space as a lot of the market participants remain unregulated.
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