Financial sector regulators are eyeing thriving cryptocurrencies and intend to strengthen their attempts to regulate the digital assets.
Sheila Warren, head of data, blockchain and digital assets with the World Economic Forum said during an online seminar that another round of strong attempts to regulate the space is to be expected. She also said that with increasing activity in cryptocurrencies more pressure is going to come from regulators to actively get involved in controlling the sector. Warren also said that the borderless nature of cryptocurrencies and making sure that innovation is not held back add up to the challenges.
Digital tokens have been in the spotlight, especially after cryptocurrency exchange Coinbase’s debut on the Nasdaq that pushed Bitcoin to a new record high of almost $65,000. Bitcoin has been on an accelerating rally in the past year and as cryptocurrencies have been gaining in popularity among a widened audience, governments have been investigating the sector risks more closely. Crypto firms have been preparing to help form the emerging regulatory frame and confront skepticism about the digital assets.