The International Monetary Fund (IMF) board plans to issue guidelines for building crypto policies. All member countries receive assistance from the board. The IMF has stated that there is a need for better regulation of cryptocurrency because it helps to reduce the risks that occur. At the same time, regulation helps to exploit the potential of crypto and use it.
IMF on crypto regulation
The board recently discussed a paper titled “Elements of Effective Policies for Crypto Assets.” The paper proposes a framework to help build a comprehensive and coherent regulatory policy. A step forward if all member states follow it will bring us to a unified global crypto regulation.
The IMF says crypto should not be given legal tender or official currency status. This protects the country’s financial sovereignty. Some other important points are that the IMF prevents excessive capital flow volatility and has clear crypto tax rules.
The framework also aims to establish a monitoring framework for crypto through domestic agencies and international cooperation. This improves surveillance and helps reduce crime rates. The IMF board directors said that although we have not yet seen the full benefits of crypto, the risks associated with them have certainly increased.
The directors of the IMF Executive Board expressed their general agreement on the need to create and implement a comprehensive set of rules for crypto-assets that includes both prudential and ethical rules. They also emphasized the importance of effectively implementing the standards set by the Financial Action Task Force (FATF). In addition, the Directors discussed the need for the IMF to work closely with standard-setting bodies to provide regulatory support.
About the IMF
The IMF is an international organization that works to promote global financial cooperation, facilitate international trade, and promote economic growth and stability throughout the world. It was founded in 1944 and currently has 190 member countries. The IMF provides financial assistance to countries facing economic crises, monitors global economic growth, and provides policy advice and technical assistance to member countries. Its main objective is to ensure the stability of the international monetary system and promote sustainable economic growth.
What are your thoughts as the IMF plans to issue guidelines for building crypto policies? And do you think this will help reduce crypto risks? Let us know in the comments below. And, if you find our content informative, share it with your family and friends. Also Read: Gate.io plans to enter Hong Kong with their new Web3 budget.
