Regulators Must Catch Up With Crypto Assets, Says IMF

The International Monetary Fund (IMF) claims that during the past few years, crypto assets have evolved from being “niche products” to becoming more widely used, necessitating the need for more thorough regulation of the industry. Aditya Narain, director of the IMF’s capital markets, and Marina Moretti, assistant director, observed in a recent study that crypto assets have significantly moved away from being “niche products.” They are now utilized for speculative investments, currency hedges, and payment systems. The failures of crypto issuers, exchanges and hedge funds have added impetus to the push to regulate these digital assets. Read more in F&D. https://t.co/Vfyr4uN6NY pic.twitter.com/4LF9P3DZpc — IMF (@IMFNews) September 5, 2022 According to Narain and Moretti, creating regulatory frameworks for crypto assets is a difficult challenge. They list the market’s rapid growth, the challenge of monitoring, and the lack of practical skills among regulators as some of the most significant challenges, stating, “Regulators are struggling to acquire the talent and learn the skills to keep pace given stretched resources and many other options.” Inconsistent Approach To Crypto Regulation Additionally, the authors have criticized the disparate authorities’ varied approaches to cryptocurrency regulation and have proposed a coordinated, uniform, and comprehensive global crypto framework for such regulation. They state that some regulato...