The elements include:
- maintaining monetary sovereignty and stability, strengthen monetary policy frameworks, and refrain from conferring official currency or legal tender status to crypto assets,
- mitigating the risks of excessive capital flow fluctuations and ensure the efficacy of capital flow management measures,
- evaluating and divulging fiscal risks while adopting a clear approach to tax treatment for crypto assets,
- fostering legal certainty surrounding crypto assets and address associated legal risks,
- imposing prudential-, conduct-, and oversight-standards on all crypto market participants,
- instituting a unified monitoring mechanism that incorporates various domestic agencies and authorities,establishing a global collaborative framework to reinforce supervision and enforcement of crypto asset regulations,
- tracking the impact of crypto assets on the stability of the international monetary system and
- strengthening global cooperation to create digital infrastructures and alternate solutions for cross-border finance and payments.
IMF has asked member countries to create a coordinated policy response for crypto assets because they are now linked to the financial system and can increase fiscal risks. The directors agree that crypto assets have implications for IMF's core policies and that strong macroeconomic policies, credible institutions, and monetary policy frameworks are important. They also think that the IMF's advice in these areas is essential. The directors welcomed the paper and believe that crypto assets should not be given official currency or legal tender status because it can harm monetary sovereignty and stability. The IMF will use this framework to guide policy dialogue with countries and development activities. It will also participate in discussions with standard-setting organizations. Countries should disclose fiscal risks from crypto assets in their fiscal risk statements.
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