IMF reiterates call for crypto regulation after the ecosystems ‘rough year’
post.article.mint.nft.title Join us on social networks The International Monetary Fund has pointed to the collapse of FTX as well as “turmoil” in the banking sector in its calls for regulating digital assets. In its “Global Financial Stability Report” released on April 11, the IMF renewed calls for “comprehensive and consistent regulation and adequate supervision” following the failures of cryptocurrency firms including FTX as well as the subsequent collapse of crypto-friendly banks, including Silicon Valley Bank and Signature Bank. According to the financial agency, regulation for entities in the crypto-asset ecosystem — with “strict prudential requirements” for stablecoin issuers — should include the storage, transfer, exchange and custody of reserves for digital assets. “[Silicon Valley Bank]s spillover from the core financial sector reverberated across the crypto ecosystem and financial institutions exposed to it,” say the report. “Its failure resulted in a depegging of two stablecoins (Circle USDC and Dai), which held uninsured deposits in the bank, as well as the demise of Signature Bank of New York because investors became concerned about its footprint in the crypto sector. These events add to questions about the viability of digital assets and reinforce the need for appropriate regulation.” The report cites a “rough year for crypto” in 2022,