IMF Chief Warns of The Dangers of Unregulated Cryptos
IMF Chief stresses the need for crypto regulation at the Seoul conference to ensure global financial stability and innovation.
The head of the International Monetary Fund (IMF), Kristalina Georgieva, talked at length about the need for crypto regulations at a digital currency conference in Seoul. She admitted that cryptocurrency could be innovative and stressed the importance of regulating crypto without stopping its progress.
Georgieva warned that unregulated cryptocurrencies could unsettle global financial stability. Rapid crypto adoption might disrupt important financial systems and the global macro economy, she said. As reported by Reuters.
The IMF's focus is on creating efficient, interconnected financial systems. Georgieva expressed her dedication to reducing crypto risks by using regulations and technology, using technology to build a better framework that promotes innovation. "Good rules can help guide innovation,” she said.
Georgieva explained that the policymakers hold a major role in shaping digital finance. They must either choose to actively engage or risk falling behind. During her speech, she talked about India and praised its progress in digital infrastructure while she emphasized learning money-handling experiences from advanced economies.
A major player in crypto from South Korea, Kim So-young, a top financial regulator, spoke on the topic of balancing cryptocurrency regulation with innovation. South Korea is planning to implement the Virtual Asset User Protection Act by July 19, 2024, to protect users and ensure market integrity.
