IMF advises how crypto should be regulated, citing urgent need for cross -border cooperation - regulation
IMF advises how crypto should be regulated, citing urgent need for cross -border cooperation - regulation
The International Monetary Fund (IMF) has formulated some recommendations to regulate cryptocurrency and pointed out that cross -border cooperation and cooperation in the regulation of cryptocurrency is urgently required.
iWF gives recommendations for crypto control
The International Monetary Fund published a blog post on the regulation of cryptocurrencies on Thursday. The article entitled "Global Crypto Regulation Should Be Comprehensive, Consistent, and Coordinated" was written by Tobias Adrian, Dong He and Aditya Narain from the Department of Money and Capital Markets.
The authors found that "crypto-assets and associated products and services have grown quickly in recent years" and "increasing their interrelationships with the regulated financial system", the authors admitted:
crypto-assets may change the international currency and financial system.
"The political decision -makers have trouble monitoring the risks from this developing sector in which many activities are not regulated," they said, adding: "In fact, we think that these risks for financial stability in some countries could soon become systemically relevant."
iWF suggests how crypto should be regulated
The IMF contribution then discusses how cryptocurrency should be regulated. "The global regulatory framework should offer the same competitive conditions along the activity and risk spectrum", the authors stated and continued to list three elements that should be recorded.
Firstly, crypto service providers-including those who offer the storage, transfer, billing and custody of reserves and assets-should be "licensed or authorized," wrote the authors. "Admission and approval criteria should be clearly formulated, the responsible authorities are clearly named and the coordination mechanisms between them should be clearly defined."second: "The requirements should be tailored to the main use of crypto-assets and stable coins", added that the regulatory authorities "had to coordinate in order to address the different risks that result from different and changing uses", including central banks and securities supervisory authorities.
Finally, the IMF contribution states that "authorities should provide clear requirements for regulated financial institutions with regard to their commitment in cryptocurrencies and their commitment".
The authors also warned that “in threshold and developing countries the emergence of crypto can accelerate what we ' cryptoization "-if these assets replace the national currency and measures and measures Use capital account management. " They came to the conclusion:
There is an urgent need for cross -border cooperation and cooperation to cope with the technological, legal, regulatory and regulatory challenges.
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