IMF solicits stronger regulations for cryptocurrencies operations
WORLD, Dec. 15 – Kristalina Georgieva, the Managing Director, International Monetary Fund (IMF), has stated the need for all-encompassing regulation in the cryptocurrency space to ensure absolute safety of the global financial stability.
While speaking at a digital currency conference in Seoul, the capital of South Korea, on Thursday, the IMF Boss highlighted the possible threat posed by widespread crypto adoption, citing concerns about its impact on macro-financial stability.
Georgieva stated that effective regulation was necessary to forestall interruption in the global monetary policy transmission, capital flow management measures, and fiscal sustainability, particularly in the face of volatile tax collection.
“Our goal is to make a more efficient, interoperable, and accessible financial system by providing rules to avoid the risks of crypto, and infrastructure by leveraging some of its technologies,” Georgieva said at the joint conference with the South Korean government and the central bank.
“Rules are not meant to return us to a pre-crypto world, nor to squash innovation.
“Good rules can spur and guide innovation,” She added.
While speaking on the development of digital money in a panel discussion, the IMF MD said that policymakers could either be part of it and assist in doing it better or be excluded from it because it would be done in any case.
A recent survey from KuCoin shows that 35 % of Nigerians between the ages of 18 and 60 were investing or trading in bitcoin or other cryptocurrencies.
In a report by The PUNCH, the Nigeria’s Securities and Exchange Commission published a new set of rules in 2022, targeted at regulating digital assets, signaling a potential change of attitude from the government towards the widespread use of cryptocurrencies.
The rapid growth and widely acceptability and even some countries adoption of Cryptocurrencies around the world, calls for immediate action towards regulating the sector to ensure their operations is in line with the financial laws and regulations of different countries.
