The World Economic Forum (WEF) held in Switzerland ended yesterday with a remarkable conclusion of the cryptocurrency market. On the last day of the Forum, WEF announced the first consortium concentration on designing a platform that will provide control over the digital currencies, which also include stable coins.
This WEF forum took place in Davos in Switzerland in the second last week of January. The cryptocurrency was among the things that received a lot of attention in the 2020 forum, especially the previous day. In the Forum, the announcement about the creation of the first global Consortium for Digital Currency Governance took place. The governance will consist of institutions in finance sectors, representatives from governments, organizations dealings with academics, internal organizations NGOs, members of the Forum’s communities at the world level, and the leading technical experts.
The reports about digital currencies say that if they received good financial governance and paired will good structure, and they will function well. The function of the Consortium is to develop a platform that will control cryptocurrency-using technology. To achieve this vision, the participants will increase the speed of operation, include many people, and be transparent in their dealings.
The strategies put in place by Consortium are to include the public and private sectors in the development of regulations. The other approach that the Consortium will use is through the creation of equal opportunities to everyone to encounter exploitation of new investors.
The Forum will move from the world level to the continental level up to the country level to ensure everyone gets an opportunity to invest in cryptocurrencies and understand how it works. According to Klaus, The founder and Chairman of WEF digital currency said a crosscutting idea would help to develop this cryptocurrency sector, which is one of the critical interests of the Forum.
Control of the cryptocurrency market is becoming more severe and engaging. On January 10th, 2020, the European Union launched an updated form of the 5th anti-money Laundering Directive (5AMLD) with high regulatory focus.
The European Cryptocurrencies and related businesses follow the rules below. One of the regulations is an In-depth know-your-customer process, Monitor your transaction, and report any suspicious activity (SARs) to the local authority.
After the introduction of the new laws, the exchanges decided to relocate from the Netherlands to Panama, where it started its activities. Through the creation of global Consortium, the world watchdogs will develop regulations to control cryptocurrencies. Everyone is looking if the framework will bear fruits because a lot of market participants work without rules.