The World Economic Forum (WEF) predicted that Crypto adoption will surge as an important part of the digital financial system but noted that 2023 will not be better.
The World Economic Forum (WEF) is a global non-governmental foundation, which is based in Cologny, canton of Geneva, Switzerland. German engineer and economist Klaus Schwab founded this international organisation in Jan 1971.
On 2 Jan 2023, The WEF foundation published a report and said that the surging involvement of traditional Banking institutions, like JPMorgan, will help the Crypto sector to gain maturity, and also Cryptocurrencies will enter the digital financial system.
Further, WEF criticised regulatory bodies which failed to prevent the meltdown of many Crypto businesses that resulted in the Crypto winter phase.
The report noted that the current bear situation of the Crypto market is much similar to the Dot-com bubble and surely it will bring a new phase for this innovative market with established institutional players.
At the WEF summit, the majority of the spokespersons talked about the future policies that we need to see in the Crypto sector so that crypto companies & other participants can work with full compliance & confidence.
Crypto regulatory efforts post FTX bankruptcy
The downfall of the multiple Crypto companies in 2022 showed that the US financial regulatory bodies did nothing to stop such kinds of events.
After the bankruptcy filed by the FTX exchange, many crypto proponents & US govt officials criticised the United States Securities and Exchange Commission (SEC) & its sister regulatory agency CFTC over their failure to prohibit the bankruptcy of such big companies.
Many reports noted that the majority of the regulatory bodies are under pressure to create an effective Crypto regulatory framework to ensure the safety of Crypto Investors.