Skip to content

Cryptocurrency Bulletin

Crypto Wallets, News, Reviews and Guides

Menu
  • Home
  • Crypto Prices
  • Analysis
  • Best Crypto Wallets
  • Crypto Market Updates
  • Interviews
  • News
  • Metaverse
  • Bitcoin
  • Predictions
  • Scams
  • Opinion
  • Videos
  • People
  • Brokers
  • Exchanges
  • Guides
  • Cryptofinance
  • Sitemap
Menu

IMF Publishes New Report On Crypto

Posted on September 7, 2022

According to a recent report from the International Monetary Fund (IMF), cryptocurrencies have become more mainstream and are being used as a hedge against weaker currencies, speculative investments, and potential instruments for payments.

Therefore, the IMF said that a global response is needed to ensure comprehensive, consistent, and coordinated crypto regulation.

New report

The International Monetary Fund (IMF) has a flagship magazine known as Finance & Development and its September edition had a report on cryptocurrency.

The report’s title shows that its focus is crypto regulation and coming up with rules that could provide a safe environment for innovation.

Aditya Narain, the deputy director of the Monetary and Capital Markets Department of the IMF, wrote the report, along with Marina Moretti, the assistant director.

The report said that crypto assets have existed for more than a decade, but regulation efforts have only recently moved to the top of the agenda.

Previously, cryptocurrencies were considered niche products that were looking for a purpose, but they have not garnered a more mainstream presence.

They are now being used for making speculative investments, as payment instruments, and also as a hedge against other currencies.

The authors said that the need for regulation has become urgent, given the failure of crypto hedge funds, exchanges, and issuers, along with a recent fall in the market’s valuation.

Crypto regulation challenges

The report also highlighted the challenges in crypto regulation. The two authors said that there are several reasons it is challenging to apply the existing framework for regulation to crypto or come up with new ones.

Moretti and Narain explained that the first issue is the rapid evolution of the crypto world.

It has become difficult for regulators to learn the necessary skills, or hire the talent for keeping up with the crypto market, considering the limited resources combined with other priorities.

Secondly, they explained that monitoring the crypto market is also complicated because patchy data is available and this makes it difficult for regulators to keep track of people.

It is also because these people are not subject to the typical reporting and disclosure requirements.

Global regulation

The IMF officials also noted that efforts were being made for developing crypto regulations on both the national and international levels.

They said that a regulatory fabric was currently being developed and a pattern would eventually emerge.

However, they said that the concern is that if it takes longer, then different regulatory frameworks would be developed by national authorities.

Thus, they elaborated that they were calling for a global response to crypto regulation that remains consistent, coordinated, and comprehensive.

They said that with a global regulatory framework in place, the market will be able to operate in an orderly manner.

Furthermore, it will also boost consumer confidence, outline what is permissible and ensure that innovation can continue in a safe space.

Crypto regulation has been a hot topic for quite a while, particularly in light of the crypto winter that has shown the need for protecting investors.

Cryptocurrency Bulletin is a blog dedicated to providing concise and up-to-date information on the latest developments in the world of digital currencies, blockchain technology, and decentralized finance.

Looking for something?

RSS Crypto Market Updates

  • Crypto Lender Celsius’ $800M Ether Staking Shake-Up Stretches Ethereum Validator Queue to 44 Days
  • Why Did Bitcoin’s Price Rise? BTC Hovers Over $27K as Investors Shrug Off Hot Jobs Data
  • Mercado Bitcoin, Brazil's Largest Crypto Exchange, Receives License as a Payment Institution
  • Marathon Digital Mined 77% More Bitcoin in May With the Help of Its Software
  • Blockchain Association Files Amicus Brief in Coin Center Lawsuit Against U.S. Treasury Over Tornado Cash Sanctions
  • U.S. House Republicans Push for Crypto Oversight With Bill to Make SEC Play Ball
  • Bridge Exploits Cost $2B in 2022, Here’s How They Could Have Been Averted
  • What AI Governance Can Learn From Crypto’s Decentralization Ethos
  • Binance Market Share Drops to Lowest Level Since October
  • Apple and Goldman Sachs Don’t Trust Their New Banking Customers

Recent Posts

  • JETbitX Review – What To Expect From This Broker?
  • UniTrust Venture – Things you need to know about this trading brand before opening an account
  • Axia – A Broker That Can Be Trusted? (Axia Review 2023)
  • Is Copy Trading Worth Your Time? Here’s What You Need To Know
  • PayPal Joins ConsensYs To Implement Metamask
  • Amber Group Acquires Sparrow Holdings To Expand To Singapore
  • Binance Stopped Withdrawals in USDC on December 11
  • Does Grayscale Have Enough Bitcoin In Its Reserves
  • Dubai Is Developing New Cryptocurrency Regulations
  • NFT Is Receiving Attention On The Governmental Level

Categories

Archives

©2023 Cryptocurrency Bulletin | Design: Newspaperly WordPress Theme