BlocksInform
Stacy-Marie Ishmael
Regulators and bankers might not always agree, but they found common ground in Davos on the topic of crypto and regulating the digital asset industry.
They found common ground in Davos about cryptography and the regulation of the digital asset industry.
They found common ground in Davos about cryptography and the regulation of the digital asset industry.Address to a discussion group about the challenges facing banks, The Minister Delegate of Singapore, Tharman Shanmugaratnam, and the member of the Board of Directors of the European Central Bank, Francois Villeroy de Galhau, stressed the need for crypto regulation, Colm Kelleher, Chief Executive Officer of UBS Group AG, echoed this sentiment.
Kelleher started the conversation on digital assets by commenting that regulators had "lost sight of the non-bank industry.
Kelleher had kicked off the conversation on digital assets by commenting that regulators had “taken their eye off the ball with respect to the non-banking sector.”“the greatest challenge today is non-banks,” villeroy responded, citing recent episodes of financial instability, in particular the performance of monetary funds, British pension funds impacted by passive investing, and Sam Bankman-fried's FTX crash. They all share a common characteristic: they are all connected to non-bank institutions. And here we are at the bottom. We're falling behind here.
This is more challenging as the landscape is changing," he said. "We should rush to an emergency non-bank settlement beginning with the cryptos." For the Thailand of Singapore,
"We should rush into an urgent non-bank regulation starting with cryptos." says Tharman, 'There are some things that are very clear, be it cryptography or traditional finance, We have to regulate money laundering, for instance. However, he suggested that the regulation of cryptoassets through a banking lens could legitimize a class of assets he described as "intrinsically speculative" and "slightly insane", one commentary met the laughter of the crowd gathered davos. That has dimmed officials’ appetite for the asset class, and regulators are restricting retail investors’ access to crypto trading.
Singapore, that emerged as a popular Asian crypto centre after China repressed the industry in 2021, saw a series of companies based there find themselves in distress - from the speculative fund Three Arrows Capital to the digital asset lenders Vauld and Hodlnaut Pte.
This has weakened the appetite of government officials for the asset class, and regulators limit retail investors' access to crypto trading. Blockchainkelleher echoes a chorus that has become commonplace among leaders of traditional financial institutions and crypto firms.
"We are seeking a regulatory framework that will enable us to meet the needs of our customers," he said, referring to the willingness of certain clients ubs to invest in digital chips.
Kelleher was optimistic about the foundational blockchain technology, qualify it as "unstoppable" while warning of the current difficulty in ensuring compliance with laws and policies regarding KYC requirements and AML provisions.
Citigroup inc. CEO jane fraser said it was important to take a step back to discuss crypto as "new and brilliant, although perhaps less new and less brilliant" and rather look to more pressing considerations. Citigroup Inc. President and CEO Jane Fraser said it was important to step back and discuss cryptography as 'new and brilliant, although perhaps less new and less brilliant" and rather look to more pressing considerations.
