Crypto adoption was much higher in corrupt nations, according to a new analysis based on a survey of 55 countries. Cryptocurrency might be used to transfer illicit revenues or capital regulations, according to the worldwide organisation. The International Monetary Fund (IMF) is asking for a clear legal regime for the digital asset industry. Despite the lack of a defined legal framework, the crypto market sector is already valued at over $2 trillion, and fresh investors continue to flock to it.
The IMF stated that the lack of a clear regulatory framework made it difficult for authorities to assess the dangers posed by cryptocurrencies. The IMF also recommended virtual asset service providers (VASPs) get the required licences and develop clear standards for regulated financial businesses dealing with cryptocurrency.
Crypto regulations globally
Countries have stepped up attempts to control the cryptocurrency market. The Financial Conduct Authority oversees virtual assets in the United Kingdom. It has also recently added five more companies to its list of authorised cryptocurrency service providers in the United Kingdom.
Before they may operate in the nation, VASPs must get a licence from the FCA. The United Kingdom is considering the best method to provide regulatory certainty for the crypto industry. However, regulatory clarity, like in many other jurisdictions, has yet to be achieved.
President Joe Biden of the United States has issued an executive order urging federal agencies to collaborate on crypto-asset regulation. The nation is also making aggressive moves to provide digital asset regulation advice.
