The international monetary fund (IMF) has called on regulators worldwide to work toward a coordinated effort to regulate the crypto market, as its effect has a far-reaching impact on global economies. The challenge, however, lies in adopting a coordinated effort toward crypto regulation.
Applying the existing regulatory framework may be insufficient, as different use cases of crypto assets attract regulators, such as banks, commodities, and securities. While some regulators prioritize consumer protection, others optimize for safety, soundness, or financial integrity. According to the IMF, the diverging regulatory approaches do not provide a level playing ground. As a result, many crypto actors have opted to migrate to a more friendly jurisdiction with the least regulatory constraint.