IMF Officials’ Report on the Regulation of Encryption and Adoption Prevailing

The International Monetary Fund (IMF) published a report that cryptocurrency assets have gained "a more common presence as speculative investments, hedges against weak currencies, and potential payment tools." The International Monetary Fund (IMF) called for a coordinated, coherent and comprehensive global response to crypto regulation.

Most Read

The International Monetary Fund (IMF) published a report entitled “Regulating encryption: the right rules can provide a safe space for innovation” in the September edition of its flagship magazine Finance & Development. The report was written by IMF Deputy Director of Monetary and Capital Markets Aditya Narine and assisted by Director Marina Moretti.

The report describes: “Crypto assets have existed for more than a decade, but only now have efforts to regulate them moved to the top of the policy agenda:

Only in the past few years have crypto assets gone from being specialized products in search of a purpose to having more common investments as speculative, hedges against weak currencies, and potential payment tools.

“The failures of cryptocurrency, exchange and hedge fund exporters – in addition to the recent slide in cryptocurrency valuations – added momentum to the push for regulation,” the authors noted.

The report details the challenges in regulating encryption. “Applying existing regulatory frameworks to encryption assets, or developing new assets, is challenging for several reasons,” wrote Narain and Moretti.

“For a start, the world of cryptography is rapidly evolving. Organizers struggle to acquire talent and learn skills to keep up with this given the cumbersome resources and many other priorities. They explained that surveillance of encryption markets is difficult because the data are incomplete, and regulators find it difficult to monitor thousands of actors that may not be subject to typical disclosure or reporting requirements. ”

Referring to efforts at the national and international levels to develop encryption regulations, IMF officials said: “The regulatory fabric is weaved and a pattern is expected. The concern, however, is that the longer this takes, the more the national authorities will be confined to different regulatory frameworks. ”

They concluded that “this is why IMF calls for a coordinated, coherent and comprehensive global response”, explaining:

The global regulatory framework will bring order to markets, help instill consumer confidence, set the limits of what is allowed, and provide a safe space for continued useful innovation.


- Advertisement -


Latest Crypto Fear & Greed Index