Crypto Needs ‘Global Regulatory Framework,' IMF Says
The International Monetary Fund (IMF) has called on financial regulators around the world to come together to develop a “global regulatory framework” for crypto assets.
In a blog post published on Tuesday, Aditya Narain and Marina Moretti – the deputy director and assistant director, respectively, of the IMF’s Monetary and Capital Markets department – wrote that a global framework would “bring order to the markets, help instill consumer confidence, lay out the limits of what is permissible, and provide a safe space for useful innovation to continue.”
Narain and Moretti argue that the absence of a coordinated, global response to the crypto boom has given way to fragmented, national-level regulation that leads to regulatory arbitrage as “crypto actors migrate to the friendliest jurisdictions with the least regulatory rigor – while remaining accessible to anyone with internet access.”
The IMF has stressed that a global response must be done sooner rather than later, to avoid national regulators from being “locked into differing regulatory frameworks.”