Top Officials Stated About Cryptocurrencies at Davos: They Revealed Their Demands!

At Davos, though regulators and bankers don’t always agree cryptocurrency and found common ground in regulating the digital asset industry.

Authorities at Davos Call for Regulations for Cryptocurrencies

Speaking at a panel on the challenges banks face, Tharman Shanmugaratnam, Singapore’s Senior Minister, and Francois Villeroy de Galhau, member of the European Central Bank Governing Council, highlighted the need for crypto regulation, which is also supported by Colm Kelleher, Chairman of UBS Group AG.

Kelleher started the conversation on digital assets by commenting that regulators are “closing their eyes on the non-banking sector.”

“The biggest issue today is the non-bank sectors,” Villeroy replied, adding that the performance of money market funds, UK pension funds affected by liability-focused investments, and Sam Bankman-Fried’s bitcoin He referred to recent financial instability, such as the collapse of the stock market FTX, and added:

“They all have one thing in common: they are all linked to non-bank institutions. And here we are lagging behind. This is more difficult because this is a very developing field.

We have to rush some urgent non-bank regulations, starting with cryptocurrencies.”

According to Singaporean Tharman, “Some things are clear: you have to regulate things like money laundering, whether it’s crypto or traditional finance.”

But Tharman’s comment was met with laughter from the Davos crowd, who suggested that regulation of cryptoassets through the lens of banking risks legitimizing an asset class he describes as “speculative in nature” and “somewhat crazy”.

*Not investment advice.