IMF calls for greater oversight on crypto, proposes new risk assessment matrix

The crypto industry is becoming an increasingly integral part of the global financial system, presenting new challenges and risks to stability in the broader economy, the IMF said

article-image

PLCNSK/Shutterstock modified by Blockworks

share

The International Monetary Fund (IMF) released a working paper last week seeking to tackle the rapidly changing crypto market and highlight significant macro-financial risks they believe have yet to be fully addressed.

The “Assessing Macrofinancial Risks from Crypto Assets” paper points out the crypto industry is becoming an increasingly integral part of the global financial system, essentially operating as a parallel, unregulated financial system. 

This brings about considerable systemic risks that the traditional financial sector cannot afford to overlook, the IMF said in its paper released on Friday.

In a bid to meet that challenge, the IMF is proposing a new tool — the Crypto Risk Assessment Matrix (C-RAM) — aimed at monitoring and assessing those perceived emerging risks both nationally and globally.

One of the most pressing challenges identified is the absence of centralized data and regulatory oversight, which calls for immediate international cooperation. 

The IMF also urges that given the fast-paced innovation and the decentralized nature of the crypto market, existing policy frameworks are inadequate for effective risk management.

A need to expand current macroprudential policies to include crypto and decentralized finance considerations is required to shore up concerns surrounding their risk profile, the IMF said. 

Read more: G20 nations endorse IMF and FSB guidelines for crypto regulation

It also suggests that this expansion should be in concert with other macroeconomic policies to build a comprehensive risk management strategy.

Based in Washington DC and consisting of 190 member countries, the IMF positions itself as an entity promoting global economic stability and growth. It achieves this through financial support, policy guidance, surveillance, technical aid, research and capacity building. It often serves as a forum for international financial cooperation.

Its paper last week also took aim at countries that have mandated bitcoin as legal tender to co-exist alongside their national currencies, including El Salvador and the Central African Republic.

“These legal changes could quickly increase the adoption and exposures of highly volatile crypto assets, amplifying the many above mentioned risks,” it said.

El Salvador adopted bitcoin (BTC) as legal tender in November 2021, becoming the first nation to do so. Four months later the IMF urged the Latin American country to ditch those efforts, citing systemic financial risks it poses to the wider community.

The IMF plans to update its conceptual framework as more data and country-specific analyses become available. It will aim for a coordinated international effort to curtail the potential “macro-financial risks” from the crypto sector, it said.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

The Ethereum Foundation’s newly-formed Protocol division — leaner, led by EF veterans — sets the stage for the chain’s next major hard fork

article-image

The gap between cryptography breakthroughs is shortening

article-image

The Solana Attestation Service acts like a passport, letting wallets verify their permissions without doxxing the user

article-image

New legal developments and renewed US-China tensions have traders wondering if a “TACO Tuesday” is in the cards this week

article-image

The ETF Store president Nate Geraci expects the SEC to approve spot solana ETFs — and staking within SOL and ether ETFs — in 2025

article-image

Yuga cofounder Greg Solano says it’s time to be thoughtful, ‘but also kinda fucking ruthless’