IMFCryptocurrency market needs major regulation. Recently, the International Monetary Fund talked about why cryptocurrencies should be regulated. “Global Crypto Regulation Must Be Comprehensive, Consistent and Coordinated” a titled shared the blog post.
The financial institution believes that crypto assets should be regulated before a major economic problem arises in various countries. These statements re-started the anti-cryptocurrency debates conducted by different organizations of various states.
International Monetary Fund calls for crypto intervention
According to the IMF, the financial institution responsible for maintaining economic stability globally, cryptocurrencies are changing the entire financial ecosystem. The main members of the institution (Tobias Adrian, Head of the IMF Monetary and Capital Markets Department, and Dong He and Aditya Narain, Deputy Heads of the Money and Capital Markets Department) pointed out that cryptos are a risk to financial stability in various countries.
“crypto assets Related products and services have grown rapidly in recent years. Also, links with the regulated financial system are increasing. Policymakers find it difficult to monitor the risks emanating from this booming industry where many activities are unregulated. In fact, we think these financial stability risks may soon become systemic in some countries.”
The representatives added that international laws need to be established and regulations governing cryptocurrencies and all their transactions should be addressed. While the institution acknowledges that cryptocurrency gains are high, it claims that they should not be perceived as a stable market.
Given these explanations, IMFthinks that even though the total value of the crypto market has reached nearly $2.5 trillion, it may just be a bubble.
cryptocurrencies also lost its credibility before the Monetary Fund due to its abuse by some individuals or companies. According to economists, cryptos do not provide protection to the user.
Besides, the decentralized market seems to continue to suffer losses as Monetary Fund representatives address the main crypto issues that will be resolved with regulation. The highest-valued cryptocurrency Bitcoin is trading at $48,310, down 3.99 percent in the last 24 hours.