nt'l securities body IOSCO announces plans for crypto asset regulation report for 2023TL;DR Breakdown
• The financial agency believes that cryptocurrencies have risks.
• IMF will seek an appropriate way to regulate the crypto market.
The cryptocurrency market will end with big regulation, according to the opinions left by the IMF. Recently the international monetary fund spoke about cryptocurrencies and why they should be regulated soon.
The financial agency believes that crypto-assets should be cracked down before a major economic problem occurs in various countries. These clarifications reopened the anti-cryptocurrency debates held by different entities in Asia and the United States.
International Monetary Fund calls for crackdown on crypto
According to the IMF, the financial agency responsible for ensuring economic stability globally, cryptocurrencies are changing the entire financial ecosystem. The main members of the agency point out that cryptos are a risk to financial stability in various countries.
The representatives added that international laws need to be created and address regulation against cryptocurrencies and all their transactions. The agency acknowledges that while crypto earnings are high, they should not be mistaken as a stable market.
Given these clarifications, the IMF admits that, although the capitalization of the crypto has reached about 2.5 trillion dollars, this could be a bubble only in an overvalued system. All these statements include the latest cryptographic movements where thousands of investors sold their tokens minted before the appearance of the new Covid-19 variant, Omicron.
Cryptocurrencies have also lost credibility with the Monetary Fund due to misuse by some people or companies. According to economists, cryptos do not offer protection to the user. It is full of fraudulent operations and benefits money laundering in different countries worldwide.
IMF discusses cryptocurrency platforms
The IMF mentions that a body should regulate cryptocurrencies and tilt its gaze towards crypto platforms. The financial agency is not afraid to say these exchanges should gain authorizations and licenses to operate with virtual currencies.
These crypto services should meet rating agencies’ and brokers’ requirements to provide their operations. But crypto platforms should be supervised by a regulatory agency to function properly.
The IMF’s agency analyzes each failure that the crypto market presents to present an appropriate regulatory scheme. The financial agency will work with the financial order team and other regulatory entities worldwide. But the monetary fund will also seek the RBA support to have a guaranteed regulation.
While the monetary fund representatives address the main crypto problems to open with regulations, the decentralized market seems to continue to suffer losses. The highest-valued cryptocurrency, Bitcoin, is trading at $48,222, with a 4.53 percent drop in value in the last 24 hours. Solana is trading at $185.30, with a drop of over 19.74 percent in one week.
However, cryptocurrency experts suggest that both tokens and the entire virtual market will have a rebound in value before the end of 2021.
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