The International Monetary Fund (IMF) has once again called for increased regulation of the cryptocurrency market to address the potential risks and promote financial stability. In a recent press briefing at the G20 Meeting in Bengaluru, IMF Managing Director Kristalina Georgieva emphasized the need for greater regulation surrounding private cryptocurrencies.
Georgieva warned of the potential financial stability issues posed by private cryptocurrencies, which are not backed by any central authority. She urged for a strong push for regulation, stating that “private crypto assets are not money,” and that rules should be similar to those applying to providers of these services in the traditional financial sector.
IMF Calls for Coordinated and Comprehensive Crypto Regulation to Promote Financial Stability
This call for increased regulation is not new, as the IMF has been advocating for a global, uniform framework for crypto for quite some time. The IMF has called for a comprehensive, consistent, and coordinated regulation to protect the stability of the world’s financial systems.
Tobias Adrian, Director of the IMF’s Monetary and Capital Markets Department, and his deputies echoed the call for increased regulation in a recent post, emphasizing the need for a coordinated global response that can fill regulatory gaps arising from inherently cross-sector and cross-border issuance and ensure a level playing field.
The IMF’s recent report on the current state of crypto adoption and regulation details how crypto adoption has gone and calls for a comprehensive regulatory approach across the activity and risk spectrum that aligns with mainstream regulatory approaches.
The call for more crypto regulation has also been echoed in various news outlets, including Devdiscourse and Coinspeaker, highlighting the growing consensus among regulators worldwide that increased regulation is needed to protect consumers and promote market stability.
In conclusion, the IMF’s continued advocacy for more crypto regulation reflects a growing recognition of the need for a comprehensive regulatory framework to address the potential risks and promote financial stability in the rapidly evolving crypto market. It remains to be seen how governments and regulators will respond to these calls for increased oversight and regulation.
