IMF is Pushing for Crypto Regulation to Safeguard “Most-Changed” Financial System

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In a blog post by the head of the Monetary and Capital Markets Department, Tobias Adrian, the International Monetary Fund (IMF) has called for a definitive global regulation of the cryptocurrency market. With digital assets growing significantly in recent months, Adrian warned of the risks in the evolving sector that “could soon become systemic in some countries.”

Desperate for a framework

As reported by business portal MoneyWeek, the IMF seeks to apply a “comprehensive, coherent, and coordinated” regulation to bitcoin and other digital currencies to “safeguard the stability of the international monetary and financial system,” which is being “profoundly” changed by crypto assets.

Adrian alludes to the fact that crypto assets and associated products and services have grown rapidly in recent years, but that this is still an unregulated financial system. In fact, the IMF is concerned that “interconnections” with the regulated financial system are increasing.

Determining the valuation —Adrian claims— is not the only challenge in the crypto ecosystem, as “identifying, monitoring, and managing risks can challenge regulators and businesses. These include, for example, the operational and financial integrity risks of crypto asset exchanges and wallets, investor protection and inadequate reserves, and inaccurate disclosure of some stablecoins.”

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Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver.