IMF calls for cryptocurrency regulation to ensure financial stability

IMF calls for cryptocurrency regulation to ensure financial stability

The International Monetary Fund (IMF) recently called for more regulation of cryptocurrencies, arguing that their rapid growth and potential impact on the global financial system make it imperative for governments to take action. While some may view this as an overreach of government authority, I believe that increased regulation is necessary to ensure the financial system’s stability and protect consumers.

The IMF’s concerns are not unfounded. Cryptocurrencies have grown tremendously in popularity over the past decade, with Bitcoin alone reaching a market capitalisation of over US$1 trillion at its peak. While some view cryptocurrencies as a way to decentralise financial systems and provide greater privacy, others have raised concerns about their potential for facilitating money laundering, terrorism financing, and other illicit activities.

Furthermore, the lack of regulation has contributed to the high volatility of cryptocurrencies, which can pose risks for both investors and the broader financial system. Cryptocurrencies are not backed by any government or financial institution, which means their value can fluctuate wildly based on market demand alone.

This volatility makes cryptocurrencies a risky investment and can contribute to financial instability if large numbers of investors suddenly sell their holdings.

In addition to these risks, there are concerns about cryptocurrencies’ environmental impact. The energy consumption required for mining cryptocurrencies is significant, and the carbon footprint of the industry is estimated to be comparable to that of a small country. As the world increasingly grapples with the urgent need to address climate change, the environmental impact of cryptocurrencies is becoming harder to ignore.

The need for cryptocurrency regulations

Given these concerns, it is clear that some level of regulation is necessary to address the risks associated with cryptocurrencies. However, it is important to note that not all regulation is created equal. Heavy-handed regulation that stifles innovation and drives the industry underground is not the answer. Instead, we need smart, targeted regulation that addresses the specific risks associated with cryptocurrencies while allowing for industry innovation and growth.

One potential area for regulation is anti-money laundering (AML) and counter-terrorism financing (CTF) laws. Currently, these laws are often not well-suited to the unique characteristics of cryptocurrencies, which can make it difficult to track and prevent illicit activities. By updating AML and CTF laws to better address the risks posed by cryptocurrencies, governments can help ensure that the industry is not used as a tool for illicit activities.

Another area for regulation is investor protection. Cryptocurrencies are a new and complex asset class, and many investors may not fully understand the risks involved. By requiring greater disclosure and transparency from cryptocurrency exchanges and other market participants, governments can help ensure that investors have the information they need to make informed decisions.

Lastly, there is the issue of environmental impact. While regulating the energy consumption of the entire cryptocurrency industry may be challenging, governments could require greater transparency from cryptocurrency miners and exchanges about their energy usage and carbon footprint. This could help incentivize the industry to move towards more sustainable practices.

Of course, there are also risks associated with increased regulation. One concern is that heavy-handed regulation could stifle innovation and drive the industry underground, making it even harder to regulate and control. Additionally, there is a risk that poorly designed regulations could increase the risks associated with cryptocurrencies by driving them into unregulated or offshore markets.

However, these risks can be mitigated through smart, targeted regulation that takes into account the unique characteristics of cryptocurrencies. By working closely with industry participants and other stakeholders, governments can develop regulations addressing the risks associated with cryptocurrencies while allowing for innovation and growth.

Final thoughts

In conclusion, the IMF’s call for more regulation of cryptocurrencies is not an overreach of government authority but rather a necessary step to ensure the stability of the financial system and protect consumers. While there are certain risks associated with increased regulation, these can be mitigated through smart, targeted regulation that addresses the specific risks posed by cryptocurrencies.

I believe that the increased regulation of cryptocurrencies is necessary to ensure the financial system’s stability and protect consumers, and can be achieved through collaboration between governments and industry participants.

 

Source: https://e27.co/imf-calls-for-cryptocurrency-regulation-to-ensure-financial-stability-20230305/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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TMRW Dubai: Ready for the new world – beyond financial freedom?

TMRW Dubai: Ready for the new world – beyond financial freedom?

Digital assets are here to stay, and their future is brighter than ever. But the world of crypto, NFT, and Metaverse is updating very rapidly, and there is a constant need to satisfy the passionate curiosity that crypto enthusiasts are known for. Although located and connected in the virtual and digital world, it is very important to bring the community together in person.

In 2022, the TMRW conference was one of the first that was held offline after the pandemic. Following the major debut success in Belgrade (Serbia), with 21,000 in-person and online participants from 100 countries, more than 50 speakers, and 250 crypto-related companies, the TMRW conference is ready to conquer the Middle east!

According to the organizers, from February 8-10, the world’s greatest crypto and NFT minds will gather at Dubai Festival City to consider all aspects of blockchain and cryptocurrencies and find out more about the future of digital currency.

“The TMRW Dubai is a three-day experience where attendees will be exposed to the most innovative crypto, NFT, and Metaverse projects and get the chance to network with their mastermind creators. Imagine a place where 6,000 people who work in and around the crypto world come together for three days to learn from 80 keynotes and world-renowned experts about the latest trends and technologies through presentations, workshops, and panels. And now imagine how precious it is to network with all these people!” – said Zoran Tadić, program director of the TMRW conference.

When it comes to TMRW speakers, some big names have already been announced, but the list will be updated in the upcoming period. According to organizers, speakers are pioneers in the industry, and also the most well-known international names, including Craig Sellars, Founder of Tether, Joel Dietz, CEO of MetaMetaverse, Nikita Sachdev, CEO & Founder of Luna PR, Mark van Rijmenam, better known as The Digital Speaker, Sharad Agarwal, Chief Metaverse Officer of Cyber Gear, Anndy Lian, an all-rounded business strategist and serial blockchain entrepreneur from Asia, Loretta Joseph, global regulatory advisor at AP Capital, and Dr. Michael Gebert, chairman of the European Blockchain Association also known as an expert in building new business models with a critical and provocative view for a realistic roadmap to develop the new digital now. More speakers will be announced in the following days.

When asked what the topics of the conference will be, Tadić explained in detail: “TMRW Dubai will cover the latest in crypto, for example, the impacts of European Crypto-Assets regulation (MiCA) on the global economy. We will also touch on the energy crisis: is PoS exactly what the world needs? NFT in 2023 should be about utility and not (only) collectibility. We will discuss whether the NFT royalties are indeed a thing of the past and mention the benefits for NFT holders. What is the connection between cancel culture and NFTs, are there controversies on the horizon? We will bluntly speak about healthcare in Metaverse and why the future us needs it. Also, our speakers will demonstrate everything you need to know about next-gen civilization. In one sentence, TMRW Dubai will bring experts in various domains, who will educate attendees on the crypto technology’s potential and impact on our lives and the world as we know it.”

Aside from the planned day program which will present the latest world trends in this sphere, the conference will also create an environment for attendees to connect, make business partnerships, discover fresh ideas, and build their networks with potential collaborators and investors through exclusive parties, VIP dinners, and interactive workshops.

Two types of ultra-early bird tickets are currently on sale. Regular tickets for in-person attendees, and virtual – for those who can’t make it to Dubai in February. For more info visit tmrwconf.net.

Website: https://tmrwconf.net/dubai-conference-2023-crypto-nft-metaverse/
Instagram: https://www.instagram.com/tmrwconf/?hl=en
Telegram: https://t.me/tmrwconference
Twitter: https://twitter.com/tmrwconf
YouTube: https://www.youtube.com/channel/UCXQ_qjF1Dd9ozdOMMwxfjqw/featured
TikTok: https://www.tiktok.com/@tmrwconf
Linkedin: https://www.linkedin.com/company/78431580/admin/
Facebook: https://www.facebook.com/tmrwconf/

 

 

 

 

Source: https://www.crypto-reporter.com/press-releases/tmrw-dubai-ready-for-the-new-world-beyond-financial-freedom-40735/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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From centralisation to decentralisation; how blockchain-oriented fintech can benefit the financial sector

From centralisation to decentralisation; how blockchain-oriented fintech can benefit the financial sector

Additional comments.

Blockchain has the potential to digitize the entire trade finance lifecycle while increasing security and efficiency, lower fraud, human error, and overall counterparty risk.

From a productivity stand point, blockchain intervention allows the whole banking process to be automated within a given set of variables and guidelines and certain banking functions can work 24/7 instead of 9 to 5. In the example of payment, the current system for cross border transactions can take up to a week to clear, with the help of blockchain the amount can be cleared instantly.

On top of everything, it can enable more transparent governance as all the transactions are trackable and traceable on the blockchain.

 

Anndy Lian

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From centralisation to decentralisation; how blockchain-oriented fintech can benefit the financial sector

As stated by experts, blockchain has the capability to digitise the trade finance ecosystem with increment in security and efficiency, reduction in fraudulent practices and human errors, and overall fall in counterparty risks

From what it seems one of the burgeoning technology blockchain is expected to have an impact across sectors including finance. Insights from a study conducted by Market Research Future, a market analysis company, have shown that blockchain within the fintech market will be valued at $31.4 billion by 2030, thereby clocking a 47.90% compound annual growth rate (CAGR). “Blockchain’s influence on the fintech sector can play a key role in boosting privacy and reduction of risks, while transactions are conducted. With no intermediaries involved, customers can conduct transactions at a reduced cost. As the financial industry starts to use blockchain, the potential to provide reliable and transparent transactions will become prevalent,” Prashant Kumar, founder, and CEO, weTrade, a cryptocurrency startup, told FE Digital Currency.

As stated by experts, blockchain has the capability to digitise the trade ecosystem with increment in security and efficiency, reduction in fraudulent practices and human errors, and overall fall in counterparty risks. A blog by International Business Machines (IBM) Corporation, a technology corporation, mentioned that 54% of banks surveyed said that transformative technologies such as blockchain, digital trade, and online trade platforms are priority areas of development with regard to future growth. “From a productivity standpoint, blockchain’s intervention will allow the banking system to be automated within a given set of variables, to allow them to function 24×7. Moreover, it can enable transparent governance, as transactions will become traceable on blockchain,” Anndy Lian, chief digital advisor, Mongolian Productivity Organisation, a governmental organisation, said.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j