IMF Executives Call For Global Crypto Regulatory Regime

Two top executives from the International Monetary Fund (IMF) are lobbying for a global cryptocurrency regulation framework.

Aditya Narain, deputy director of the IMF’s Monetary and Capital Markets Department, and Marina Moretti, assistant director, believe that a global regulatory framework for crypto assets is required to safeguard users, foster innovation, and maintain market order.

“A global regulatory framework will bring order to the markets, help instill consumer confidence, lay out the limits of what is permissible, and provide a safe space for useful innovation to continue.”

According to Narain and Moretti, Bitcoin legislation varies around the world, with different authorities tugging in different ways.

“But national authorities have, on the whole, taken very different approaches to regulatory policy for crypto assets.

At one extreme, authorities have prohibited the issuance or holding of crypto assets by residents or the ability to transact in them or use them for certain purposes, such as payments.

At the other extreme, some countries have been much more welcoming and even sought to woo companies to develop markets in these assets.”

According to IMF management, the “fragmented global response” is ineffectual since different jurisdictions are acting at cross purposes.

“The resulting fragmented global response neither assures a level playing field nor guards against a race to the bottom as crypto actors migrate to the friendliest jurisdictions with the least regulatory rigor — while remaining accessible to anyone with internet access.”

Along with the development of cryptocurrencies are regulations for control by government agencies and central banks. This growing market presents many problems for countries that want to take advantage of the benefits of digital currencies, such as Brazil or the euro area.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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