The IMF (International Monetary Fund) has issued a suggested framework targeting the construction of a worldwide approach for the regulation of cryptocurrency to be operable on a global level. The IMF, through a blog post, emphasized that the worldwide regulations of crypto should provide fair playing space for all people. As per the agency, the respective agenda should push the providers of crypto-asset services to be completely licensed via the relevant organizations.
The IMF points out that such bodies’ licensing should be comprehensive and clear through the provision of designated roles. In addition to this, it was indicated by the IMF that the stablecoins, as well as for cryptocurrencies’ primary utilization, should be in line with the regulations. As per the IMF, the investment-related products and services should have the implementation of the requirements that are analogous to those to be complied with by the dealers and brokers, being overseen on the behalf of the securities department.
Products and services related to payments should additionally have the implementation of the requirements like those imposed on the bank deposits, being regulated on the behalf of the authority for payments oversight or the central bank.
Last but not the least, It has been recommended by the IMF that the relevant bodies should provide guidelines regarding the regulated financial organizations relating to the exposure thereof as well involvement in digital assets. For example, the IMF mentioned that on the determination of banks over the provision of custody services, there should be a requirement for such institutions to highlight the emerging hazards.
The decline in cash flow
Moreover, the IMF focused on the need for a collective crypto regulation agenda that requires cross-border cooperations to handle the newly added modifications in the space of cryptocurrencies. Furthermore, the IMF cautioned that the uncoordinated worldwide regulatory actions might undermine the cash flows. It added that the cross-border, as well as cross-sector remit of cryptocurrency, restricts the national approaches’ effectiveness.
The existing regulations and laws may not permit for the national mechanisms that thoroughly encompass the features of such assets, as added by the IMF. Nonetheless, the institution admitted that the organization of collective regulations is much difficult, nevertheless, the relevant entities should commence operating on an agenda immediately with the growth of the sector. Simultaneously, the IMF focused its attention on the organizations’ implementation of regulations and recommended that they should attempt to guard the evolving dimensions of cryptocurrencies.
Source: Herald Sheets