IMF calls for international cooperation on cryptocurrencies
The International Monetary Fund – an organization dedicated to promoting global financial cooperation and increasing financial stability – warned of the risks associated with the increase in the value of cryptocurrencies.
According to Bloomberg, IMF spokesman Jerry Rice said last week that the world needs “broader international discussion and cooperation between regulators.”.
Rice added: “When asset prices rise rapidly, risks increase, especially if market participants buy assets with borrowed money. It is important that people are aware of these risks and take steps to manage these risks. “.
The spokesman also emphasized that the danger of cryptocurrencies is not only that investors can lose their money, but also that cryptocurrencies can be used in money laundering, terrorist financing, tax evasion and fraud..
Previously, the IMF took a balanced approach to cryptocurrency regulation. In September 2017, the head of the IMF Christine Lagarde said that cryptocurrencies can “compete” with traditional currencies that are issued by states, and to ignore them is “not entirely reasonable”.
She added that cryptocurrencies will cause a “massive coup” and warned that central banks and financial services need to pay more attention to this technology..
On January 12, US Treasury Secretary Steven Mnuchin announced that the Financial Stability Oversight Board has formed a working group for discussion among US regulators.
The activities of this group, he said, will focus on cryptocurrencies..
“We must make sure that bad people do not use these currencies for bad deeds,” added Mnuchin..
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