IMF requests that the global financial watchdog to push crypto regulatory efforts
Two new International Monetary Fund (IMF) papers on regulating stablecoins and unbacked cryptoassets have urged the Financial Stability Board (FSB) to establish and lead global efforts on crypto regulation.
According to Monday’s reports, the regulator is “ideally positioned to take the lead in coordinating and setting global standards to assist national regulation of crypto assets,” as well as leading the national implementation of crypto asset regulation while considering sector-specific standards.
Among the solutions outlined in the studies are the creation of standardized global categories to inform cross-sectoral standards and direct data collecting. In addition, they advocate a risk-based strategy with extra restrictions for “entities and activities that produce higher risk” and the backing of stablecoins with secure and liquid assets.
The Financial Stability Board (FSB) will provide G20 finance ministers and central bank officials with “high-level advice” on cryptocurrencies and stablecoins in October, according to a statement made by the FSB this summer.
In a blog post from December 2021, the IMF also noted its strong partnership with the FSB to build regulatory frameworks for cryptoassets. The relationship has had tangible effects, since the Basel-based organization’s previous research, methodologies, and definitions form the foundation for the reports’ recommendations.
In response to the 2008 financial crisis, the FSB was established as the successor to the Financial Stability Forum.