The International Monetary Fund (IMF) has published a blog post on the need for comprehensive consideration of cryptocurrency regulations.
In the article written by 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, it was pointed out that crypto money regulations should be comprehensive and coordinated.
IMF officials argued that due to uncoordinated regulations, it is difficult for legislators to monitor the risks in the cryptocurrency sector.
Stating that in the absence of a common and comprehensive regulation, unstable capital flows may be facilitated, the officials emphasized that the task of the IMF is to protect the stability of the international monetary and financial system, and that cryptocurrencies have profoundly changed the financial system.
In the IMF article, it was pointed out that crypto money regulations should provide three fundamental innovations.
1- Regulatory framework crypto money service providers should be required to obtain licenses from relevant institutions. Licensing and authorization criteria, responsible authorities should be clearly defined in regulations.
2- Crypto assets and stable cryptocurrencies need to be audited according to their main use cases.
3- Authorized institutions are required to regularly report on financial institutions related to cryptocurrency trading.
Finally, officials said the IMF plans to work closely with the Financial Stability Board and other members of the international regulatory community to develop an effective regulatory approach to crypto assets.