WEF, BCG report digital asset regulation expands beyond crypto

Digital asset regulation is expanding beyond traditional cryptocurrencies into areas such as tokenization, according to a report from the World Economic Forum and Boston Consulting Group. The report states that digital assets are impacting money transfers, financial market functions, and countries’ monetary sovereignty. It highlights that tokenization and digital money, including stablecoins and programmable payment instruments, could have a greater impact than Bitcoin on how governments establish legal frameworks. Cryptocurrencies like BTC, ETH, and SOL still dominate the market, with a combined market capitalization of about 3000000000000 dollars. While this remains substantial, the report suggests that digital money and tokenization technology could have a more significant long-term effect. Key policy tasks identified include legal clarity, custody asset protection, financial crime prevention, monetary sovereignty, capital flows, sanctions compliance, and financial system competitiveness. The report emphasizes the need for countries to adjust existing regulations to keep pace with technological change.