At the World Economic Forum in Davos this year, crypto regulations were discussed. Bankers and regulators gathered to discuss the issues facing the digital asset market and cryptocurrencies. During a panel discussion, Tharman Shahmugaratnam of Singapore, Senior Minister, and Francois Vilroy de Galhau, a member of Governing Council of European Central Bank, stressed the need to regulate crypto currencies. Colm Kelleher of UBS Group AG also supported regulation, saying that regulators have “taken their eyes off the ball when it comes to the non-banking sector.”
Villeroy cited recent examples of financial instability such as the performance and UK pension funds that were affected by liability-driven investment as proof of the need to have non-bank regulation. Tharman also stressed the necessity of regulation to prevent money laundering in both traditional finance and cryptocurrency.
Kelleher said that blockchain technology is “unstoppable” as UBS is looking for a regulatory structure to allow clients to invest in digital tokens. Jane Fraser, Citigroup CEO, suggested that we take a step back to discuss other issues that might be less shiny and new. The discussion about crypto regulation came to an abrupt halt.