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Participants of the World Economic Forum (WEF) presented recommendations on the regulation of digital assets. The guide was compiled in collaboration with the WEF Digital Currency Governance Consortium.
The drafters of the document note that one of the key aspects in the regulation of cryptocurrencies is cooperation between the governments of various countries and global coordination. This will help to prevent differences in approaches between regulators in different countries and make enforcement consistent. The authors of the document identified a number of problems in the current regulation of cryptocurrencies, including the attitude towards digital assets as traditional financial assets.
“Crypto assets and their ecosystem do not always fully fit into the current activity-based and intermediation approach to regulation, even in cases where the actions with crypto-assets mimic those in the traditional financial market,” the document notes.
The guide provides many classifications of the regulatory framework for comparison. For example, results-based regulation and risk-based regulation are considered. Separately, the regulation on fines, which is applied in the United States, stands out. Moreover, the authors of the document do not approve of such an approach.
The authors of the guide emphasize the need for flexible regulation of the industry, in the development of which not only the authorities of the country, but also representatives of the industry will participate. Regulatory sandboxes, the creation of guidelines for cryptocurrency firms, and letters of no objection from regulators were cited as positive developments.
“Regulatory makers and industry players need to collaborate and share best practices across countries to ensure consistency and clarity. Since these new technologies are based on transparency, it is quite possible to create the best regulatory tools to solve cross-border problems,” the WEF representatives say.
Recall that in April, the organizers of the WEF recognized the economic and environmental benefits of bitcoin mining, saying that this activity can significantly reduce greenhouse gas emissions into the atmosphere.
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