The International Monetary Fund (IMF) has recognized the economic value of cryptocurrency innovation and the urgent need for clear rules to regulate the industry.
The IMF has published its position on the crypto industry, calling for “comprehensive, consistent and coordinated” global regulations for cryptocurrency.
A market capitalization of nearly $2.5 trillion indicates the significant economic value of blockchain technology, but it can also be overvalued and pose risks.
The organization, which works to ensure global financial stability and facilitate international trade, has stressed the need for global regulation.
The global regulatory framework must ensure a level playing field along with the activities and range of risks.
The Foundation has listed three main cores of global cryptographic regulation.
First, it is necessary that providers who provide custody, exchange and settlement services for assets be “licensed or authorized.”
Second, the rules “must be tailored to the core use cases of cryptoassets and stablecoins.” Thus, cryptocurrency investment products must meet the requirements for securities brokers. The provision of services must comply with the requirements for banking operations, and custodial services must be provided with risk insurance.
Thirdly, the role of the state in the cryptocurrency market must be clearly defined. Regulated financial institutions that interact with cryptocurrency must rely on clear regulatory requirements. Limits should be set on the storage and use of various crypto assets, in relation to equity and liquidity levels, similar to the traditional areas of insurance, pensions and securities.
Subscribe to ForkNews on Telegram to stay up to date with news from the world of cryptocurrencies
You May Also Like
Estonia has no plans to legalize Bitcoin
Estonian Prime Minister Kaja Kallas, who has only held this post since January of this year, categorically rejected the legal future of Bitcoin in the country.
Officials will take control of the Ukrainian crypto market
Ukraine is considering removing digital assets from the illegal “gray zone” by 2021. The next proposal from the Ministry of Economic Development and Trade of Ukraine was published by the press service of the department. The new Concept of state policy in the field of virtual assets will legalize the cryptocurrency market in the country.
