The emergence of cryptocurrencies and their increasing adoption impetus the need for crypto regulations. Issues like failures of projects, exploits, high market volatility, and misuse of digital assets in crimes have put the regulatory authorities on their toes worldwide.
After the US Fed decided to fight market inflation with its hawkish approach, IMF called for a more comprehensive, consistent, and complete global regulatory policy for digital assets, per the report by IMF named ‘The right rules could provide a safe space for innovation.’
Deputy Director Aditya Narain and Assistant Director Marina Moretti from the IMF’s Monetary and Capital Markets Department published the report. Citing the complexity in regulating crypto assets and their technological nature and ever-changing needs, the authors said regulating digital currencies is a hard task and mentioned: “Applying existing regulatory frameworks to crypto assets, or developing new ones, is challenging for several reasons. For a start, the crypto world is evolving rapidly. Regulators are struggling to acquire the talent and learn the skills to keep pace, given stretched resources and many other priorities. Monitoring crypto markets is difficult because data are patchy, and regulators find it tricky to keep tabs on thousands of actors who may not be subject to typical disclosure or reporting requirements.”
