Joint IMF and FSB Report Warns Against Total Crypto Bans
A joint report from the International Monetary Fund (IMF) and the Financial Stability Board (FSB) has warned authorities against outright bans on cryptocurrencies.
The report, titled “Digital Assets and Financial Services: An Evaluation of Regulatory Risk,” highlights the need for an “open and precautionary” approach toward digital assets and cautions against any measures that could stifle innovation.
The authors of the report note that cryptocurrencies may present challenges to the traditional financial sector, but they also provide access to financial services for those who may have otherwise been excluded.
The report reiterates that authorities should strive for a healthy balance between risk management and the growth of the industry.
At the same time, the report is also clear that regulation is necessary to ensure the safety and integrity of the global financial system. The report recommends that regulators assess the risks and benefits of financial innovation and ensure that appropriate measures are taken to protect investors and consumers.
The authors of the report also argue that crypto regulations should be applied uniformly across jurisdictions. They suggest that international standards should be developed for digital asset services providers, such as exchanges, custodians, and wallet providers.
In conclusion, the authors acknowledge that the global crypto industry is still evolving and that more research and data collection is needed to ensure that appropriate measures are taken to protect customers.