The growing adoption of digital assets requires the harmonization of the efforts of the supervisory authorities of various countries regarding their regulation. This is stated in statement International Monetary Fund (IMF).
The experts noted that the potential benefits of the new asset class have not yet materialized, but potential side problems have already emerged.
“The widespread adoption of cryptocurrencies could undermine the effectiveness of monetary policy, circumvent capital flow management measures and exacerbate financial risks,” the document says.
The IMF also mentioned the impact of digital assets on financial stability, legal risks, consumer protection and market integrity.
Several panellists did not rule out an outright ban on cryptocurrencies, although the general stance was that “it’s not the best option.”
The experts considered a structure of nine sections that could help member countries “develop a comprehensive, coherent and coordinated regulatory response”:
- Protect monetary sovereignty and stability by strengthening the monetary policy framework, do not grant digital assets the status of an official currency or legal tender.
- Beware of excessive capital flow volatility and maintain the effectiveness of capital flow management measures.
- Analyze and disclose fiscal risks and adopt an unambiguous tax regime for cryptocurrencies.
- Establish legal certainty for digital assets and eliminate legal risks.
- Develop and enforce prudential, conduct and oversight requirements for all industry participants.
- Establish a joint monitoring system between different national agencies and authorities.
- Develop international cooperation mechanisms to strengthen oversight and enforce regulations on cryptocurrencies.
- Monitor the impact of a new asset class on the stability of the international monetary system.
- Strengthen global collaboration to develop digital infrastructures and alternative solutions for cross-border payments and finance.
“Measures should not stifle innovation. Departments could use some of the underlying technology of cryptocurrencies for public policy.”the document says.
In September 2022, the organization emphasized that the bankruptcies of issuers, exchanges and hedge funds were additional incentives to strive to create a comprehensive regulation of digital assets.
In November, IMF experts called on African countries to tighten regulation of cryptocurrencies. In April CAR approved bitcoin as a means of payment on a par with the local franc.
Earlier, the IMF criticized El Salvador’s decision to legalize digital gold and recommended depriving the asset of this status.
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