The international community, including global financial institutions such as the International Monetary Fund (IMF), are growing increasingly concerned with cryptocurrencies. In sum, the prevalence and fast-growing nature of cryptocurrencies has created significant concern because governments and international actors across the globe have failed to regulate the industry.
According to the IMF, the total market value of all cryptos surpassed $2 trillion in September 2021. This means the total market value multiplied by ten in just one year.
In particular, the IMF is concerned that the assets “lack strong operational, governance, and risk practices,” because there is no regulatory structure in place to create a foundation of consumer protection. As such, the IMF asserts that consumers are at significant risk if they choose to trade cryptos. Further, they claim that cryptocurrencies create “data gaps,” which “can open unwanted doors for money laundering, as well as terrorist financing.”
Moving forward, the widespread adoption of cryptocurrencies will inevitably decrease the ability of central banks to effectively implement monetary policies, vital for the protection of a healthy economy.
The first step for international governments and regulators will be to monitor developments more accurately in the crypto ecosystem. This will require those in charge to tackle data gaps swiftly, accurately, and effectively.
Future regulations of the most stable cryptocurrencies should be proportionate to the threat which they pose on national and international economies. Rules, for example, should more closely align with industries that provide similar products, such as banks and monetary funds.
On an international scale, policymakers should be concerned with promoting transparency in cross-border transactions, while still allowing them to be fast, reliable, and cheap.
Miami and South Florida Criminal Defense Attorney
As global governments, including the United States begin to crackdown on cryptocurrency crimes, individuals in Miami and South Florida may find themselves facing serious charges. Cryptocurrency crimes vary, but could lead to serious charges, resulting in severe criminal and civil penalties. Due to the complexity of Bitcoin and cryptocurrency related crimes, it is important to have an attorney on your side with experience in crypto related charges. Contact Miami criminal defense attorney Ralph Behr for a free consultation.