IMF Managing Director Kristalina Georgieva Calls for Regulatory Guidance and Infrastructure to Respond to Cryptocurrency Risks
Posted: December 14, 2023 7:36 AM Updated: December 14, 2023 7:36 AM
Correction and fact check date: December 14, 2023, 7:36 AM
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IMF Managing Director Kristalina Georgieva called for regulatory oversight of cryptocurrencies because of the risks they pose to global financial stability.
International Monetary Fund (IMF) Managing Director Kristalina Georgieva said in a speech Thursday that there is a high need for regulatory oversight of cryptocurrencies due to their potential risk to global financial stability.
Georgieva highlighted the inherent risks associated with widespread adoption of cryptocurrency assets at a digital currency conference in Seoul, South Korea.
“The problem is that a higher rate of adoption of cryptocurrency assets could undermine macro-financial stability,” Georgieva said in her opening remarks. “The problem is that macro-financial stability may be undermined,” Georgieva said in her opening remarks. pointed out the potential impact.
In a joint meeting with South Korean government and central bank representatives, Georgieva outlined the IMF’s goal to build a more efficient, interoperable and accessible financial system by implementing regulatory measures to mitigate risks associated with cryptocurrencies. Reuters reported.
She emphasized that the intention is not to revert to the pre-crypto era, but to foster innovation responsibly.
Last month, the Financial Supervisory Service announced that it would establish a new organization dedicated to regulating virtual assets, which is a measure in preparation for the ‘Virtual Asset User Protection Act’, which is scheduled to go into effect in July 2024.
The country is also preparing to introduce a pilot program next year that will involve 100,000 citizens in the use of deposit tokens based on a central bank digital currency (CBDC).
“There is ‘tremendous interest’ in learning from each other and ‘greatest interest’ in learning from emerging markets,” Georgieva said, citing India’s exemplary digital public infrastructure.
She also acknowledged the value of the historical experience of developed economies in the evolution of monetary systems and emphasized the need for cross-border cooperation and knowledge exchange in navigating the complexities of the digital financial environment.
Visible movement toward cryptocurrency regulation
Amid ongoing financial turmoil marked by instability and notable controversies, the cryptocurrency landscape is experiencing significant challenges, with the FTX cryptocurrency trading company experiencing a spectacular collapse.
There is an urgent need for a conversation about how governments and regulators plan to leverage the enormous potential of cryptocurrencies while mitigating risks.
The UK government has officially confirmed its commitment to overseeing the cryptocurrency industry in a decisive move to provide regulatory clarity. A consultation paper recently published by the government outlines its strategy to implement comprehensive legislation regulating cryptocurrency activity by 2024.
On another front, US-based web3 startup WalletConnect announced restrictions on its services in Russia. The Company’s decision is a direct response to the latest legal developments and guidance issued by the U.S. Treasury’s Office of Foreign Assets Control (OFAC).
Meanwhile, Turkey is stepping up its efforts in the area of cryptocurrency regulation. According to the report, the country is actively working on new regulatory measures to persuade the Financial Action Task Force (FATF) to remove the country from its “grey list” of countries deemed to have not done enough to combat money laundering and terrorist financing. I’m doing it.
The global landscape of cryptocurrency regulation is evolving as central banks, including the Reserve Bank of Australia, delve deeper into the potential of tokenized currencies and their regulatory frameworks. As these regulatory developments unfold, their far-reaching implications for international financial markets are becoming increasingly clear.
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Kumar is an experienced technology journalist specializing in the dynamic intersection of emerging fields including AI/ML, marketing technology, cryptocurrency, blockchain, and NFTs. With over three years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and providing comprehensive insights. Kumar’s expertise lies in producing impactful content, including articles, reports and research publications for prominent industry platforms. With a unique skill at combining technical knowledge and storytelling, Kumar excels at communicating complex technical concepts in a clear and engaging way to diverse audiences.
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Kumar is an experienced technology journalist specializing in the dynamic intersection of emerging fields including AI/ML, marketing technology, cryptocurrency, blockchain, and NFTs. With over three years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and providing comprehensive insights. Kumar’s expertise lies in producing impactful content, including articles, reports and research publications for prominent industry platforms. With a unique skill at combining technical knowledge and storytelling, Kumar excels at communicating complex technical concepts in a clear and engaging way to diverse audiences.