Banking panel reinforces need for crypto regulation –

A group of global banking experts hosted by the World Economic Forum (WEF) convened on the need for global crypto regulation, including stablecoins and uncovered crypto assets. The panel agreed that there needs to be at least some kind of basic regulation for these assets and bank-equivalent regulation for blockchain applications that aim to offer products similar to those of traditional banking.

The WEF Global Banking Panel is seeking more crypto regulation

Global bankers have agreed on the need for clearer cryptocurrency regulations. In one Blackboard Titled “Banking in the Eye of the Storm,” guidelines from central banks and private banks at the 2023 Davos World Economic Forum (WEF) meetings examined the cryptocurrency market following events in 2022, including the demise of cryptocurrency exchange FTX.

François Villeroy de Galhau, governor of the Central Bank of France, stated that regulating crypto markets is key to controlling the possible damage that they could cause to investors in the future. Villeroy de Galhau explained:

The question is not whether we need to regulate or not… we certainly need to regulate. Some even say that it's not about regulating, but about banning.

Villeroy de Galhau also urged the alliance of central banks and private banking institutions to work together to promote innovation, including the launch of CBDCs (central bank digital currencies).

The Governor of the Central Bank of France also expects the implementation of the Basel Committee's final rules in all jurisdictions, which were approved in December and offer guidelines for banks' exposure to cryptocurrency assets.

A basic level of regulation

While all panelists agreed that at least a minimum level of regulation is needed, including anti-money laundering (AML) and know-your-customer (KYC) measures for all assets, Singapore's senior minister Tharman Shanmugaratnam explained that some assets would be better left unregulated to highlight the risks that investing in these assets could bring to potential investors.

However, he clarified that any cryptocurrency and blockchain-based technology that aims to provide comparable services to banks, including stablecoins, should be regulated in the same way as traditional financial institutions.

Shanmugaratnam believes that banks' response to crypto and blockchain innovation should be to link local domestic systems with today's global payment systems to help immigrants and SME that are currently served by cryptocurrency alternatives.

What do you think about bankers’ opinion on cryptocurrency regulation? Tell us in the comments section below

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price surge occurred in December 2017. He has a background as a computer engineer, lives in Venezuela and is affected by the cryptocurrency boom on a social level. He offers a different perspective on crypto success and how it helps the unbanked and underserved.

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