Cryptocurrency Regulation: An Industry Perspective
on the Insights and Tools Needed to Shape Balanced Crypto Regulation
5/09/2021 – 08:59
This document is published by the World Economic Forum as a contribution to a project, insight area or interaction. The findings, interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum, nor the entirety of its Members, Partners or other stakeholders.
Cryptocurrencies and the underlying blockchain technology are becoming a pervasive force in the global economy, affecting everything from cross- border retail payments to interbank transfers. The growing adoption and decentralized nature of cryptocurrencies pose unique and unprecedented challenges for financial authorities, capital markets regulators, consumer protection and privacy bureaus, and tax authorities around the world. However, cryptocurrencies also bring opportunities in terms of leveraging the internet to provide new digital pathways for individuals and micro-, small- and medium-sized enterprises (MSMEs) into the global financial system. Further, cryptocurrencies and underlying blockchains contribute a new paradigm for secure data and value transmission, storage and access. As such, the technological and economic particularities of cryptocurrencies require prudent regulation that accommodates the characteristics and use cases of cryptocurrency.