The International Monetary Fund (IMF) recently published an article on crypto-assets and their regulations. The fund called for a holistic holistic approach to regulate digital assets.
The crypto market has seen significant growth over the past 11 months. The market capitalization of digital assets has jumped over 200% this year and hit a record high of $ 3 trillion in November 2021. With increasing adoption, the use of crypto assets in illegal financial activities has also increased. . The IMF has highlighted some key issues with Bitcoin and other digital assets.
According to the fund, several digital currencies are overvalued and protecting crypto investors remains a major issue due to the lack of clear regulation. The IMF believes that an uncoordinated global approach to cryptocurrency regulation will destabilize the financial system.
“In emerging markets and developing economies, the advent of cryptocurrencies can accelerate what we have called ‘crypto’, when these assets replace national currency and bypass foreign exchange restrictions and account management measures. of capital. Risks like these underscore why we now need comprehensive international standards that address in more detail the risks to the financial system related to crypto assets, their associated ecosystem, and their associated transactions, while enabling an enabling environment for crypto products and applications. ‘useful crypto assets,’ the post noted.
At a recent event hosted by Bocconi University in Italy, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), said that it is difficult to treat Bitcoin and other cryptocurrencies like money. .
Cryptography regulatory framework
The IMF has underscored the urgent need for international collaborations to resolve technical, supervisory and regulatory challenges related to cryptocurrencies. The financial institution believes that digital currencies are changing the international monetary and financial system.
“The IMF has developed a strategy to continue to fulfill its mandate in the digital age. The Fund will work closely with the Financial Stability Board and other members of the international regulatory community to develop an effective regulatory approach to crypto-assets, ”the IMF added in the post.
The International Monetary Fund (IMF) recently published an article on crypto-assets and their regulations. The fund called for a holistic holistic approach to regulate digital assets.
The crypto market has seen significant growth over the past 11 months. The market capitalization of digital assets has jumped over 200% this year and hit a record high of $ 3 trillion in November 2021. With increasing adoption, the use of crypto assets in illegal financial activities has also increased. . The IMF has highlighted some key issues with Bitcoin and other digital assets.
According to the fund, several digital currencies are overvalued and protecting crypto investors remains a major issue due to the lack of clear regulation. The IMF believes that an uncoordinated global approach to cryptocurrency regulation will destabilize the financial system.
“In emerging markets and developing economies, the advent of cryptocurrencies can accelerate what we have called ‘crypto’, when these assets replace national currency and bypass foreign exchange restrictions and account management measures. of capital. Risks like these underscore why we now need comprehensive international standards that address in more detail the risks to the financial system related to crypto assets, their associated ecosystem, and their associated transactions, while enabling an enabling environment for crypto products and applications. ‘useful crypto assets,’ the post noted.
At a recent event hosted by Bocconi University in Italy, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), said that it is difficult to treat Bitcoin and other cryptocurrencies like money. .
Cryptography regulatory framework
The IMF has underscored the urgent need for international collaborations to resolve technical, supervisory and regulatory challenges related to cryptocurrencies. The financial institution believes that digital currencies are changing the international monetary and financial system.
“The IMF has developed a strategy to continue to fulfill its mandate in the digital age. The Fund will work closely with the Financial Stability Board and other members of the international regulatory community to develop an effective regulatory approach to crypto-assets, ”the IMF added in the post.