For some couple of years, crypto resources moved from being “niche items” to having all the more a standard presence, prompting the need for more thorough guideline or regulations of the space, according to the International Monetary Fund (IMF).
The failures of crypto issuers, exchanges and hedge funds have added impetus to the push to regulate these digital assets. Read more in F&D. https://t.co/Vfyr4uN6NY pic.twitter.com/4LF9P3DZpc
— IMF (@IMFNews) September 5, 2022
In another report revealed by IMF capital markets director Aditya Narain and his assistant Marina Moretti, noticed that crypto resources have immovably moved away from being “niche items” to ones utilized for speculative ventures, hedges against feeble currencies and payment instruments.
The authors added that this, alongside ongoing failures of crypto issuers trades, and mutual funds have “added stimulus to the push to control.”
However, developing regulatory frameworks for crypto assets is an uphill battle, according to Narain and Moretti, highlighting the market’s rapid evolution, the difficulty of monitoring, and the absence of workable skills between regulators among the more serious obstacles, stating:
“Regulators are struggling to acquire the talent and learn the skills to keep pace given stretched resources and many other priorities.”
The authors have also called out the inconsistent approach to crypto regulation amongst various regulators, instead arguing for a coordinated, consistent, and comprehensive global crypto regulatory framework.
“Some regulators may prioritize consumer protection, others safety and soundness or financial integrity. And there is a range of crypto actors — miners, validators, protocol developers — that are not easily covered by traditional financial regulation,” they explained.
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