WEF'S CRYPTO PLAN

Chapter 1: WEF's Crypto Regulation White Paper.

- WEF's white paper on crypto regulation will influence crypto regulations worldwide, and preface asks how to control a borderless, open source, decentralized tech.

- Solution proposed is global coordinated approach to regulation, paper put together with contributions from members of the Digital Currency Governance Consortium.

Chapter 2: Crypto Regulations and Smart Contracts.

- Authors acknowledge crypto has financial use cases, but refer to crashes of Terror and FTX to justify increased regulatory scrutiny

- Smart contracts could be used to ensure regulatory compliance, Weft wants to control people's activities

- To regulate crypto, need to identify where activity is taking place, who is engaging in it, and who is responsible.

Chapter 3: Regulatory arbitrage and global crypto regulation.

- Regulatory arbitrage due to crypto developers' ability to move freely is a challenge to global crypto regulation.

- WEF is attempting to control movement of people by turning major cities into smart cities.

- Early crypto regulations, including MiCA, will come into force in 2021, potentially leading to a crypto market rally.

- Crypto hubs blamed for causing regulatory arbitrage, could be bad news for UAE, HK, and Singapore.

Chapter 4: WEF's report on global crypto regulation.

- WEF released a report on global crypto regulation outlining 5 approaches: risk-based, agile, self-regulation, enforcement, and a combination of the four

- Risk-based regulation is the most popular approach, as it is tailored to the specific activity but difficult to implement.

Chapter 5: The risks of global crypto regulations.

- Risk-based regulation of crypto is a contentious issue due to unclear risks.

- Weft's recommendations would make crypto worse than existing financial system.

- Core issue is how to control something designed not to be controlled.

- Weft's regulations would track all Bitcoin miners and nodes.

Key Takeaways:

- Risk-based regulation of cryptocurrency is the most popular approach according to the WEF, which involves assessing the risk of a particular crypto activity and then regulating it accordingly.

- Agile regulation involves allowing regulations to evolve in response to new innovations, while self-regulation involves allowing the crypto industry to set standards.

- Regulation by enforcement involves taking crypto companies and projects to court and using the precedent as de facto regulations.

- The WEF's global crypto regulations would require information about all registered entities to be shared with international organizations, regulations to be enforced via smart contracts, and all cryptos to be ESG compliant.

- The core issue that the WEF and its allies are trying to address is how to control something that is designed not to be controlled, which could involve tracking all Bitcoin miners and nodes.