East Asia Pacific: Published IMF paper on Elements of Effective Policies for Crypto Assets

On 23 February 2023, the International Monetary Fund (IMF) published a paper on "Elements of Effective Policies for Crypto Assets" with the purpose of providing guidance to IMF members on key elements to develop a policy framework for crypto assets. The Paper outlines nine elements to assist members. In particular, the Paper recommends safeguarding monetary sovereignty and stability by strengthening monetary policy frameworks and not granting crypto assets official currency or legal tender status, implementing measures against capital volatility and maintaining the effectiveness of capital flow management measures. Furthermore, the Paper suggests providing legal certainty for crypto assets, addressing legal risks, developing and enforcing prudential conduct, overseeing requirements to all crypto market actors, and establishing a joint monitoring framework across different domestic agencies and authorities. Finally, the Paper stresses the need for the establishment of international collaborative arrangements to enhance the supervision and enforcement of crypto asset regulations, monitoring the impact of crypto assets on the monetary system and strengthening global cooperation to develop digital infrastructures and alternative solutions for cross-border payments.