The IMF publishes proposals for a globally standard crypto regulatory framework
The International Monetary Fund (IMF) has produced a recommended framework for global cryptocurrency regulation.
The IMF emphasised in a blog post that global cryptocurrency rules should try to provide a fair playing field for all stakeholders. According to the agency, the system should require complete licencing of crypto-asset service providers by appropriate regulatory bodies.
The IMF stresses that licencing such companies should be straightforward and thorough, with specific functions available.
Additionally, the IMF said that rules should reflect the main usage of cryptocurrencies in conjunction with stablecoins. According to the International Monetary Fund:
“For example, investment services and products should be subject to the same regulatory standards as securities brokers and dealers, which are supervised by the securities regulator. Payment services and products should be subject to the same regulations as bank deposits, and should be supervised by the central bank or the payments oversight body.”
Finally, the IMF has urged relevant authorities to provide guidance to regulated financial institutions regarding their exposure to and interaction with digital assets.
For example, the IMF said that if banks decide to provide custody services, rules should oblige them to disclose the associated risks.
According to the IMF, cross-border coordination is necessary to handle developing difficulties in the bitcoin field. Additionally, the IMF cautioned that uncoordinated global regulatory actions might disrupt capital flows.
“Because crypto has a cross-sector and cross-border scope, national measures are limited in their usefulness. Countries have adopted widely disparate policies, and existing rules and regulations may preclude national approaches that include all facets of these assets,” the IMF stated.