The International Monetary Fund has called for a global effort to regulate the cryptocurrency world.
In a blog post authored by specialists from the IMF’s Monetary and Capital Markets department, the organisation justifies the need for coordination due to the fact that ‘crypto assets are potentially changing the international monetary and financial system in profound ways’.
According to the IMF’s specialists, as the crypto sector grows, policymakers are struggling to monitor risks, as many of the activities are unregulated. And, to counter these issues, they recommend the creation of a global regulatory framework including the licencing of crypto service providers, the creation of requirements for the use of crypto assets and stablecoins, and the setting up of requirements on regulated financial institutions regarding their exposure and engagement with crypto.
The authors also alerted to what they called ‘cryptoisation’ of emerging markets and developing economies, when crypto assets replace the domestic currency and then circumvent exchange restrictions or capital account management measures.
"Levelling the playing field is really important, as long as based on rules that don’t stifle cryptos for the sake of the status quo. At Dynasty Global Investments AG we are really committed to best practice regarding key aspects of the financial sector, such as governance, and we believe it is important all players in the crypto sector follow these practices."
Stated Eduardo Carvalho, the founder and CEO of Dynasty Global Investments AG.