The International Monetary Fund (IMF), a United Nations organization that seeks to foster global monetary cooperation and financial stability, is calling for cooperation from all around the globe with regards to cryptocurrencies.
A report claimed that IMF spokesman Gerry Rice said last week there is an urgent need for “greater international discussion and cooperation among regulators.”
“Greater international discussion and cooperation among regulators, yes, would be helpful,” Rice was quoted as saying.
Rice continued:
“When asset prices go up quickly, risks can accumulate, particularly if market participants are borrowing money to buy. It’s important for people to be aware of the risks and take the necessary risk-management measures.”
The spokesman also took note of the fact that cryptocurrencies pose dangers that go well beyond investors’ losses.
These hold the potential to be used for money laundering, terrorist financing, tax evasion and fraud.
“Cryptocurrencies can pose considerable risks as potential vehicles for money laundering, terrorist financing, tax evasion and fraud,” Rice said.
The Washington-based IMF was established during the Second World War to oversee the Bretton Woods system of pegged exchange rates.
Though the fund has since developed since its founding, into a lender of last resort for indebted nations, its opinions on currencies still carry a lot of weight, given its traditional role.
Previously, the IMF has backed a balanced approach on cryptocurrency regulation.
Christine Lagarde, managing director of the organization, said back in September of 2017 that cryptocurrencies may give conventional government-issued currencies a “run for their money” and it is “not wise” to ignore them.
She also said that cryptocurrencies would bring “massive disruptions” and issued a warning that central banks and financial services must pay attention to the nascent technology.
The new statements from the IMF come after U.S. Treasury Secretary Steven Mnuchin relayed last week that the Financial Stability Oversight Council has established a working group to conduct discussions with other U.S. regulators.
The group is “very focused” on cryptocurrencies, he said.
“We want to make sure that bad people cannot use these currencies to do bad things,” Mnuchin added.
