IMF: DeFi market needs urgent regulation
The IMF released a report on financial stability stating that the DeFi sector poses a threat to financial markets and thus requires regulation.
According to the report on global financial stability, the IMF admitted that the development of the fintech segment could improve the efficiency of financial services, promote competition within it, as well as make it more accessible to the masses. However, inadequate regulation and “interconnectedness with the traditional financial system” can have a negative impact on financial stability. In particular, digital banks and the DeFi market are of the greatest concern to the IMF in the crypto field.
The organization called for regulation of the DeFi segment, paying particular attention to stablecoin issuers and centralized exchanges. According to the Fund's concerns, the non-regulated DeFi market causes market risks, cyberthreats, and liquidity risks. However, these two areas are traditionally the object of increased attention from the supervisory authorities.
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