The WEF Great Reset may fail if crypto remains unregulated
The World Economic Forum’s (WEF) Great Reset agenda will be under threat – and could “fail spectacularly” – if cryptocurrency markets are not managed through government regulatory frameworks, Nigel Green of the deVere Group has warned.
The WEF’s 2023 annual meeting in Davos (which starts today in Switzerland) will not succeed unless it advances cryptocurrency regulation, said Green, who is CEO and founder of one of the world’s largest financial advisory, asset management and fintech organizations.
The WEF returns to its traditional time slot and conference venue in Davos for the four-day event, after two years of disruption due to the COVID-19 pandemic.
Davos is dominated by American delegates
According to market reports, The in-person conference, which will see global leaders and industry chiefs meet at the Swiss mountain resort, also coincides with Bitcoin, the world’s largest crypto by market capitalization, registering a staggering 28% jump in value since the start of January.
Records show 2,658 attendees registered for the event, and they include heads of state, business royalty, actual royalty, media honchos and academics from more than 100 countries.
Representatives from the United States make up the largest portion of delegates at 27%, while two-thirds of attendees are from 10 of the “more than 100” nations included.
US crypto regulation plays an important role in the Great Reset strategy
This means that regulations applied in the United States are likely to have the greatest impact on the success of the Great Reset strategy, which aims to homogenize the global financial markets as part of the broader strategy, as described in the WEF’s public Great Reset statement.
Outlining its plans for a global one-world order, it says: “The inconsistencies, inadequacies and contradictions of multiple systems – from health and finance to energy and education, are more exposed than ever before in a global context of concern for life, livelihood and the planet
“… As we enter a unique window of opportunity to shape the recovery, this initiative will provide insights to help all those who determine the future of the state’s global relations, the direction of national economies, society’s priorities, the nature of business models. , and the management of global commons.”
More action, less talk about crypto regulation, says CEO of deVere
Speaking about the opportunities presented by Davos, Green said governments need to take action, rather than continuing to debate the possibility of regulation in the cryptosphere. “The leaders gathered in Davos at the WEF must next week return home to their governments, who must then insist that their financial regulators must stop ‘talking the talk’ and start seeking out regulation of the cryptocurrency market.
“The time for endless platitudes about greater regulatory control is over. Action is required.
“Should those present at the WEF not advance the crypto-regulation agenda as a result of the 2023 summit, they will have failed spectacularly.”
Green also cited three reasons why crypto needs further regulation, saying that institutional use of crypto can only succeed if there is greater trust in the space and it is less volatile. He also called for crypto to be “brought into the regulatory tent and held to the same standards as the rest of the system.”
The second reason Green gave related to incidents of fraud. “After a year of significant collapses of crypto firms, allegations of high-level fraud and prison sentences for insider trading, there is no doubt that greater scrutiny will help protect investors.”
And finally he mentioned that regulation would provide a; “potentially long-term, a sustainable economic boost to those countries that introduce it as crypto is widely regarded as the future of finance.”
What is needed now, says Nigel Green, is a workable internationally agreed and recognized regulatory framework that “makes sense and does not stifle innovation or compromise the inherent nature of the digital assets and market.”
He concluded: “Cryptocurrencies are here to stay and the market will only grow exponentially.
THREE global leading counties working on crypto regulations
USA: The most influential country globally when it comes to cryptocurrency and presence in Davos, the United States issued a directive for a new regulatory framework for cryptocurrency in late 2022, following directives from the Biden administration. According to reports, the new directive has empowered existing market regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission. In its capacity, the SEC has targeted exchanges like Coinbase (COIN) and Binance over their crypto products and reigned in renegade currencies with lawsuits (think Ripple).
A Whitehouse plan also stated that the US “Treasury will complete an illicit financial risk assessment on decentralized finance by the end of February 2023 and an assessment of non-fungible tokens by July 2023.”
Meanwhile, there is tangible discussion about the launch of the CBDC digital dollar, which will see a number of pilot programs launched to pressure test its effectiveness.
China: Cryptocurrencies were banned in China in September 2021, after cryptomining for Bitcoin was halted. But China has already run several pilot programs for its digital Yuan. It did this by issuing a number of Yuan to test groups, delivered in digital wallets. Currently, however, China classifies cryptocurrencies as property for purposes of determining inheritance, and the People’s Bank of China (PBOC) has banned crypto exchanges from operating in the country, saying they facilitate public funding without approval.
Great Britain: The UK classifies cryptocurrency as property and it is not legal tender. Crypto exchanges are required to register with the Financial Conduct Authority and trading in crypto derivatives is prohibited in the UK. In terms of regulations, there are cryptocurrency-specific reporting requirements related to KYC standards, and strict anti-money laundering (AML) safeguards. In November 2022, the Bank of England announced its intention to launch a digital pound that would be issued alongside cash. Currently, there is no proposed date for the CBDC launch.
