New Delhi: The International Monetary Fund (IMF) has warned the risks caused by Cryptocurrency, especially in developing and developing countries, and suggest coordinated acts to place global standards.
“Determination of assessment is not the only challenge in the Crypto ecosystem: Identification, monitoring, and risk management against regulators and companies.
This includes, for example, at risk of operational and financial integrity of the exchange of Crypto assets and reserves of investors, and inadequate reserves and disclosures Inaccurate for some stable coins.
Especially in developing country markets and developing economics, the emergence of Crypto can accelerate what we call ‘cryptoisation’ – when this asset replaces the domestic currency, and avoids restrictions on exchange and steps for capital account management, “IMF words on the blog.
It is also said that capital flow management may need to be set with digital currencies.
Comments come because the government is working on the law, and both PM Narendra Modi and FM Nirmala Sitharaman have called for coordinated global actions to deal with it.
“Criptro cross-cross and cross-border remit limits the effectiveness of the national approach.
Countries take very different strategies, and existing laws and regulations may not allow a comprehensive national approach to all these asset elements.
What is important, many providers Crypto services operate on all borders, making assignments for more difficult supervision and enforcement.
Uncoordinated regulatory measures can facilitate capital flows that are potentially destabilized, “he said.
The authors suggest the “Crypto-Asset” service provider license, including storage, transfer, completion, and reserve detainees and assets, on normal lines for financial services players.
Two sets of rules have been proposed – one for services and products for investment, with requirements similar to securities and brokers and regulations by securities regulators.
Others will apply in cases where the government allows the use of cryptocurrency as a payment tool, where the IMF suggests that the rules must be similar to bank deposits with the supervision of the central bank or payment supervision.
“Apart from the initial authority to approve Crypto services and products, all supervisors – from the central bank to banking securities and banking regulators – need to coordinate to overcome various risks arising from various uses,” Blog said, “said the blog.
Next, he said the regulator must prescribe Exposure norms to regulate financial entities dealing in Cryptos.