The IMF warned on Tuesday that the longer it takes international regulators to come up with a plan for regulating crypto, the more likely it is that regulation will be done on a piecemeal, national level.
The International Monetary Fund (IMF) has asked financial regulators from all over the world to work together to create a “global regulatory framework” for crypto assets.
In a blog post published on Tuesday, Aditya Narain and Marina Moretti, the deputy director and assistant director of the IMF’s Monetary and Capital Markets department, said that a global framework would “bring order to the markets, help instill consumer confidence, set the limits of what is allowed, and provide a safe space for useful innovation to continue.”
Narain and Moretti say that the lack of a coordinated, global response to the crypto boom has led to fragmented, national-level regulation that leads to regulatory arbitrage as “crypto actors migrate to the friendliest jurisdictions with the least regulatory rigor – while remaining accessible to anyone with internet access.”
The IMF has said that there needs to be a global response as soon as possible so that national regulators don’t get “stuck in different regulatory frameworks.”
