IMF recognizes the role of crypto assets and supports global industry regulation

English Sep 8, 2022

The International Monetary Fund (IMF) published on its website a report titled “Regulating Crypto: The Right Rules Can Provide a Safe Space for Innovation”.

According to the institution, cryptocurrencies have become cross-border and cross-sector entities used for speculative investments, protection against weak currencies and as a potential means of payment, said an article by two IMF executives in the September issue of the IMF's Finance and Development magazine.

The document states that some countries have amended legislation or introduced new ones, but in general they are adopting different approaches from one another, resulting in the fragmentation of the global response.

In addition to not guaranteeing a level playing field, the decision allows members of the crypto industry to shift their base to friendlier jurisdictions. They can continue their business and remain accessible to anyone with the internet, the IMF said.

Against this backdrop where cryptocurrencies appear to be unstoppable, the IMF advocates a coordinated approach to fill regulatory gaps as cryptocurrencies are issued with a cross-border customer profile. However, the institution also recognizes that applying existing rules or creating new ones for the digital asset sector is a big challenge as the entire space is rapidly evolving.

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Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.