The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has called for cryptocurrency regulations due to potential risks to financial stability.
Speaking at a Seoul conference on digital currencies, Georgieva acknowledged the permanence of cryptocurrencies and highlighted their growing market cap and public interest.
She warned about the risks to macro-financial stability arising from high adoption, particularly in emerging markets like India, Nigeria, and Vietnam.
Georgieva stressed the need for clear regulations to create an efficient, interoperable, and accessible financial system while emphasizing that rules are meant to guide innovation, not stifle it.
This call for crypto regulations aligns with the IMF’s previous stance, as highlighted in its press release from February titled “Elements of Effective Policies for Crypto Assets.”
In that release, the IMF emphasized the urgency of establishing effective policies for crypto assets, considering the challenges faced by exchanges and actors in the crypto ecosystem.
The IMF emphasized that doing nothing is not a viable option, given the continued evolution of crypto assets despite market downturns.
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