Crypto assets have gained prominence in the last decade, prompting a recent surge in efforts to establish effective public policies worldwide. This is driven by their increased adoption and market capitalization, alongside growing interconnectedness with the financial sector. In response, the IMF published a comprehensive framework titled “Elements of Effective Policies for Crypto Assets,” focusing on nine key elements to address associated risks and achieve policy objectives. This panel discussion aims to foster dialogue among member countries, allowing stakeholders to share insights and address policy and legal concerns regarding crypto assets, ultimately aiming to maximize benefits while minimizing risks.
The Virtual Assets (VA) ecosystem is evolving rapidly and includes a large range of new products and services, business models, activities, and interactions, including peer-to-peer and VA-to-VA transactions. In response, the Financial Action Task Force (FATF) updated its recommendation in 2018 and 2019 to capture VA and Virtual Asset Service Providers (VASP) and mitigate money laundering (ML) and terrorism finance (TF) risks arising from this market.
As a result of these developments, the Fund’s membership has been increasingly implementing FATF’s new requirements with legislative and institutional reforms. The Financial Integrity Division of the Fund’s Legal Department (LEG) has been providing technical assistance (TA) to countries to support the development of an effective VA and VASP AML/CFT framework. In November 2023, the Fund hosted roundtable discussions in Abu Dhabi, UAE comprising more than 15 countries and several international organizations to discuss a LEG-developed supervisory ML/TF risk assessment methodology and to create a space for supervisors of VASPs across jurisdictions to provide feedback, share experiences and discuss challenges. Participants shared feedback that there was a lack of fora, for AML/CFT supervisors, to discuss challenges and explore solutions with many countries having to address cross-border supervisory issues in a siloed and potentially ineffective manner. The Dubai Fintech Summit provides an opportunity for such a discussion.
The IMF is a global organization that works to achieve sustainable growth and prosperity for all of its 190 member countries. It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being. The IMF is governed by and accountable to its member countries.
