Friday, December 2, 2022
Home Policy IMF Chief Economist Stresses on ‘need for global policy’ on Crypto Regulation

IMF Chief Economist Stresses on ‘need for global policy’ on Crypto Regulation

The cryptocurrency boom witnessed in the last couple of years has sprung many countries into action over regulating the digital industry. Naturally, their regulatory approaches have varied based on factors relating to their individual economies. The International Monetary Fund, however, is firming its insistence on adopting a global regulatory framework instead.

IMF’s chief economist Gita Gopinath recently pitched for a global policy framework for the digital assets industry. Thus, noting that “no individual country can solve this problem on their own” due to the ease with which cryptocurrencies can be transacted offshore. “There is a need for a global policy on it urgently,” she added.

The economist, while addressing an event organized by India’s National Council of Applied Economic Research (NCAER), argued that cryptocurrencies pose a greater challenge to emerging economies. Thus, stating,

“It would seem that cryptocurrencies are more attractive for emerging markets compared to developed economies. However, emerging markets have exchange rate controls, capital flow controls, and cryptocurrencies can impact that.”

Albeit, Gopinath did acknowledge the practical obstacles that emerge from banning cryptocurrencies due to their decentralization. She instead insisted on the important need to regulate them. Notably, Gopinath also added that the laws governing them should be similar to those applying to other financial investment assets.

The decentralization of crypto assets is another aspect that calls for  a global policy approach according to Gopinath, who said,

“There are challenges to banning it whether you can end up with truly banning crypto because many exchanges are offshore and they are not subject to regulations of a particular country.”

Take for example Binance, which is one of the largest centralized crypto exchanges and yet continues to operate without any physical headquarters around the globe. This has landed the company in trouble in numerous countries, which had either banned or warned the exchange into becoming compliant, showcasing an almost concerted effort at containing Binance.

Gopinath’s comments have come just days after the IMF released a detailed blog endorsing a globally “comprehensive, consistent and coordinated” approach to crypto regulation.

The core elements of this framework would include authorization of crypto-asset service providers, establishing requirements for crypto brokers and products similar to traditional markets. It would also include clear requirements for regulated financial institutions with crypto exposure.

Source: ambcrypto.com

_______________________

About Skyhigh.Vip  

Skyhigh.Vip is a global institutional investor with a vast interest in Arts / Construction / Education / Business Services / E-Sports and various other growth industries.  

Several of its popular portfolios include GO Chambers which is the world’s largest business chamber listing provider with over 30,000 active chambers as its members.  

Flexgigzz is the Asia leading marketplace for freelancers service and together with SOHO Learning Hub which is an online platform for short courses and both of them aims to be the number one provider in Asia. For growth industries such as E-Sport Authority which is dedicated to providing independent media coverage to all E-Sport News related from around the world and for the art world, there is Atelier Auction which is an investable art auctioneer and being in the art scene for decades.

- Advertisment -

Most Popular

DTI: There Is No Exact Rules Of Crypto

DTI or The Philippine Department of Trade and Industry waved off a Binance ban proposal, Due to the lack of regulatory stance on cryptocurrencies from...

ATM Installations Of Crypto Will Dominated By U.S.

ATM Installations Of Crypto Will Dominates By U.S. U.S. dominates crypto due to China our from the competition The US picked up the slack to become...

Indian Taxes Increase, Companies Decrease Amount Of Employee

Indian taxes increase! India's new cryptocurrency tax has dealt a heavy blow to the crypto exchanges in the country, A moment ago, an announcement related to...

Riot Blockchain Moves Their Miner To Texas

Riot Blockchain the Crypto mining firm start relocating their rigs Moving from its New York data facility, With the majority intended to end up in central...

Bitmex Banned Russians From Their Platforms

BitMEX is major cryptocurrency exchange It aims to increase compliance with the European sanctions against Russia By preparing to enforce major restrictions for its Russian users. Then...

ECB Officials Will Consider Newest Crypto Law

ECB officials will get ready for crypto growth As crypto grown so fast, Many countries started to prepare anything related to the digital assets Regulators from 19...

Rumors KuCoin Bankrupt, CEO Gives A Statement

KuCoin is a crypto exchange that used by many users these few times As we know that the line's condition these days shows not really...

U.S. Lawmakers: There Is Inequality In Crypto Industry

U.S. Lawmakers seeing a problem A problem in crypto industry development According to some U.S. lawmakers in the House Financial Services Committee, The lack of diversity in...

Grayscale Investments File Disapproved, CEO Disappointed

Grayscale Investments launched a legal challenge It against the Securities and Exchange Commission (SEC) Previously, they are denied to convert their application From Grayscale Bitcoin Trust (GBTC) Into...