The International Monetary Fund has unveiled a proposal that compels global regulators to offer oversight in the cryptocurrency sector no different from the traditional financial sectors.
The international financial institution wants the cryptocurrency firms to be completely licensed globally for a functional regulatory framework.
IMF notes that investments services and products should have matching requirements with those of securities brokers supervised by the security regulators. It adds that payments services and products should feature similar requirements to bank deposits provided by the central bank or the relevant regulatory authority.
The institution maintains that the licensing of the digital assets firms should be broad, clear, and with designated roles. IMF adds that the laws should be skewed towards the primary use of cryptocurrencies and stablecoins.
IMF acknowledges that the cryptocurrency assets were rapidly growing and faced valuation risks calling for a comprehensive global oversight standard.