The increasing rate of adoption of crypto assets warrants a global framework to guide their national regulation and supervision, according to staff of the International Monetary Fund (IMF).
"Our analysis suggests that crypto assets are no longer on the fringe of the financial system. Given their relatively high volatility and valuations, their increased co-movement could soon pose risks to financial stability especially in countries with widespread crypto adoption," wrote Tobias Adrian, Tara Iyer, and Mahvash Qureshi of the IMF in an article.
"It is thus time to adopt a comprehensive, coordinated global regulatory framework to guide national regulation and supervision and mitigate the financial stability risks stemming from the crypto ecosystem," the trio added.
Adrian and Qureshi are part of the IMF's Monetary and Capital Markets Department, while Iyer works in the Monetary and Financial Markets Department.