He thinks crypto investors should be better protected after the collapse of FTX and the collapse of TeraUSD last year.
The cryptocurrency industry had a tough year last year. After last year, economic circles and regulators think that investors in the sector should be better protected.
IMF Releases A Report Containing The Cryptocurrency Industry
The International Monetary Fund (IMF) says it has been a “challenging year” for the cryptocurrency markets and the industry needs to be regulated comprehensively and consistently. The IMF suggests that stablecoin issuers and crypto companies should have bank-style capital requirements.
The IMF’s “Global Financial Stability Report” calls for international regulation of the cryptocurrency industry, after a year of collapses in crypto-linked banks and major stock markets. The report states that comprehensive and consistent regulations should focus on protecting consumers and corporate governance. It is also emphasized that regulations should cover crypto storage, transfer, exchange and oversight of reserves, and those that issue stablecoins should include extra prudent requirements.
The IMF report cites “a tough year for crypto,” as crypto and tech-heavy lenders Silvergate, Signature and Silicon Valley Banks followed the bankruptcy of the FTX crypto exchange in November. The IMF says it raises questions about the viability of digital assets and reinforces the need for proper regulation.
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