The IMF’s chief urges swift and robust crypto regulations at a digital currency conference in Seoul, while South Korea’s vice financial regulator chief highlights the need for a balanced approach.
The International Monetary Fund (IMF) has warned of the dangers of unregulated cryptocurrencies for global financial stability.
Speaking at a digital currency conference in Seoul, the IMF’s Managing Director, Kristalina Georgieva, said the rapid adoption of crypto assets could pose risks to macro-financial stability, such as disrupting monetary policy, capital flows, and fiscal sustainability.
Georgieva stressed the need for swift and robust crypto regulations and infrastructure to counter these risks and protect investors and consumers.
She also acknowledged the innovation potential of crypto assets and said that the IMF supports building a more efficient and interoperable financial system that leverages new technologies.
The Managing Director added that good rules can spur and guide innovation and that the IMF is committed to balancing oversight and innovation in the digital financial landscape. She also emphasized the role of policymakers in shaping the future of digital money and the importance of mutual learning from emerging and advanced economies.
South Korea is one of the key players in the crypto space, with a high level of adoption and interest among its population. The country’s vice financial regulator chief, Kim So-young, said South Korea is seeking a balanced approach to regulating cryptocurrencies, considering investor protection and technological innovation.
Kim made this remark during the Seoul conference, which the South Korean government, the central bank, and the IMF jointly organized. He said that South Korea is aware of the benefits and challenges of crypto assets and is working to create a secure and transparent environment for users and market participants.
He also mentioned that the Financial Services Commission (FSC) in South Korea has recently announced detailed regulations under the Virtual Asset User Protection Act, which will take effect on July 19, 2024.
These regulations aim to prevent money laundering, fraud, and market manipulation involving crypto assets and ensure crypto service providers’ compliance and accountability.
