IMF leaders call for a global crypto regulatory regime to keep consumers safe
Two senior International Monetary Fund (IMF) executives are advocating for a global regulatory framework for cryptocurrency.
IMF Monetary and Capital Markets Department Deputy Director Aditya Narain and Assistant Director Marina Moretti say a global regulatory framework for cryptoassets is needed to protect users, encourage innovation and bring order to markets.
“This is why the IMF is calling for a global response that is (1) coordinated so that it can fill the regulatory gaps arising from inherently cross-sectoral and cross-border issues and ensure a level playing field; (2) consistent, so that it is aligned with common regulatory approaches across the activity and risk spectrum; and (3) comprehensive, so it covers all actors and all aspects of the crypto ecosystem.
A global regulatory framework will bring order to markets, help instill consumer confidence, set the boundaries of what is permissible, and provide a safe space for useful innovation to continue.”
According to Narain and Moretti, cryptocurrency regulations vary across the globe with jurisdictions pulling in different directions.
“However, national governments, by and large, have very different approaches to crypto-asset regulatory policy.
At one extreme, authorities have banned the issuance or holding of crypto-assets by citizens or the ability to trade them or use them for specific purposes, such as payments.
At the other extreme, some countries have been much more accommodating and even tried to ask companies to develop markets for these assets.”
IMF leaders say the “fragmented global response” is ineffective, as the different jurisdictions work across the board.
“The resulting fragmented global response neither ensures a level playing field nor protects against a race to the bottom as crypto actors migrate to the friendliest jurisdictions with the least regulatory stringency – while remaining accessible to anyone with internet access.”
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