IMF urges global crypto regulation update.

  • September 16, 2022
  • Jennifer Moore
IMF urges global crypto regulation update.

There has been a hike in cryptocurrency growth, and there is no denying that, even if you are against it. According to IMF, crypto assets are no longer just niche products but a mainstream element that traders speculate as investments, while getting increasingly used as a payment instrument, and hedge against a weaker currency. Thus, it has called time for better regulation measures, especially fuelled by the massive crypto failures in recent times.

However, it is not simple as one might assume.

Why Is Crypto Regulation Not Simple?

Given the rapid evolution, lack of ability to monitor, and skill gap between regulators, creating a regulatory framework for cryptocurrency would be a Herculean task. The regulators should acquire talent to create a viable crypto regulation. However, given the vast resource and other priorities, it will not be accomplished over a fortnight. 

Also Read: Russia Says ‘Da’ To Cross Border Crypto Payments And ‘Net’ To Local Crypto Exchange

Problems With The Current Crypto Regulations

Experts tag the current regulations as an inconsistent approach because there is no consistent global framework for cryptocurrency regulation. Some regulators focus more on customer protection, while others prefer financial integrity. At the same time, there are several classes of crypto actors, and there should be different levels in the regulations to cover them. For instance, the protocol developer, miners, and validators do not protect/ monitor by outdated traditional laws. 

Also Read: South Korea is Soon to Regulate Security Tokens

Advantages Of A Global Framework

  • Global crypto regulation will bring order to the markets.
  • It would improve customer confidence as it makes a clear picture of what is legal and permissible.
  • A global regulation can stand as a framework for innovations in the field.

Current Global Cryptocurrency Regulations

It is not that regulators haven’t tried out a global framework. There are a few occurrences where countries have tried to open up their skills and regulations to create a global and consistent option.

  •  Within a few weeks, Europe will release the MiCA (Markets in Crypto-Assets) regulations.
  • Responsible Financial Innovation Act of USA (currently a bill) will help to address some digital asset sector queries once it becomes a law.

Wrapping Up

Only now the lawmakers and politicians conclude that cryptocurrency is too valuable and powerful and impossible to ban. Once skeptics and crypto users have stopped spending resources on proving who is correct, we might have the right talent and power to impose a global regulation for better crypto usage.

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