147

IMF releases guidelines for a uniform global crypto regulation framework

IMF releases guidelines for a uniform global crypto regulation framework
Justinas
Baltrusaitis
10 months ago
2 mins read

The International Monetary Fund (IMF) has released a proposed framework aimed at making the global cryptocurrency regulatory approach functional on a worldwide level. 

In a blog post, the IMF stressed that the global crypto regulations should strive to offer a level playing field for all parties. According to the agency, the framework should compel crypto-asset service providers to be fully licensed by relevant agencies.

The IMF notes that the licensing of such entities should be clear and comprehensive by offering designated roles.

Additionally, the IMF indicated that the regulations should align with the primary use of cryptocurrencies alongside stablecoins. According to the IMF: 

“For example, services and products for investments should have requirements similar to those of securities brokers and dealers, overseen by the securities regulator. Services and products for payments should have requirements similar to those of bank deposits, overseen by the central bank or the payments oversight authority.”

Lastly, the IMF has called for the provision of guidelines by relevant authorities on regulated financial institutions in relation to their exposure to and engagement with digital assets.

For instance, the IMF noted that if banks resolve to offer custody services, regulations should require such institutions to outline the arising risks. 

Destabilization of cash flow

According to the IMF, for a uniform crypto regulation framework, there is a need for cross-border collaboration to address the emerging challenges in the cryptocurrency space. The IMF also warned that uncoordinated global regulatory measures might destabilize cash flows.

“Crypto’s cross-sector and cross-border remit limits the effectiveness of national approaches. Countries are taking very different strategies, and existing laws and regulations may not allow for national approaches that comprehensively cover all elements of these assets,” IMF added.

However, the agency acknowledged that setting up uniform regulations is challenging, but concerned parties should start working on a framework immediately as the sector grows.

At the same time, IMF stressed that as agencies enact regulations, they should strive to protect the innovative aspect related to cryptocurrencies. 

Latest News

Join us on Twitter or Telegram

Or follow us on Flipboard Flipboard

Like the article? Vote up or share on your social media

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s

Justinas Baltrusaitis
Author

Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.

AD