Two top International Monetary Fund (IMF) officials advocate for a worldwide regulatory framework for cryptocurrencies.
As a result, the IMF is advocating for a global response that is coordinated to address the regulatory gaps caused by crypto’s fundamental cross-sector and cross-border nature and guarantee a fair playing field.
A worldwide regulatory framework would bring order to the markets, inspire consumer trust, define the boundaries of what is acceptable, and provide a safe environment to continue beneficial innovation.”
Narain and Moretti argue that bitcoin legislation varies across countries due to the global nature of the phenomenon.
“However, national authorities have, on average, chosen vastly diverse approaches to crypto asset regulation.
At one end of the spectrum, authorities have restricted the issue or possession of crypto assets by people and the ability to deal with them or use them for specific purposes, including payments.
On the other end of the spectrum, some nations have been considerably more receptive, actively courting corporations to establish markets for these assets.
Executives of the IMF assert that the “fragmented global response” is unproductive since many jurisdictions are acting in opposition to one another.
“The ensuing fragmented global response neither guarantees a fair playing field nor prevents a race to the bottom as crypto players shift to the friendliest countries with the least regulatory rigor — while staying available to anybody with an internet connection.”
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