IMF says uniform crypto regulation framework requires cross-border collaboration
The International Monetary Fund released a proposal to regulate the crypto industry under a single roof in the whole world.
There are several countries and several regulatory authorities, which are responsible to regulate the crypto industry in their ways. On one side there are high-level regulators like US SEC & CFTC, on the other hand, there are those regulatory bodies, which are not able to restrict the crypto operations perfectly like the Russian crypto regulation framework. By considering these issues, to make a better regulation framework, IMF released a report.
The IMF said that there is a need to create a global crypto regulation framework, which is possible through the cross-border collaboration of the regulators. And if we achieve global regulation on crypto, then we will get better benefits to regulate crypto.
According to the IMF, all the crypto and crypto-related services providers should have licenses under suitable regulatory bodies. IMF also stressed that all the provisions of the License to the crypto services should be much better and clear to force these services to follow the guidelines perfectly.
The IMF noted that higher regulation should not only be imposed on the stablecoins but also should be on the crypto assets. They wrote through the blog:
“For example, services and products for investments should have requirements similar to those of securities brokers and dealers, overseen by the securities regulator. Services and products for payments should have requirements similar to those of bank deposits, overseen by the central bank or the payments oversight authority.”
In the last, IMF stressed that there should be high provisions and guidelines by the regulators over the crypto or digital assets services providers to remain engaged with better communication with regulatory bodies, to see all the fair and unfair things.
On the global crypto regulation framework, the IMF said that if there will not be better coordination in the global countries then that may end up destablized cash flows. They added:
“Crypto’s cross-sector and cross-border remit limits the effectiveness of national approaches. Countries are taking very different strategies, and existing laws and regulations may not allow for national approaches that comprehensively cover all elements of these assets”.
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