IMF Managing Director: "Regulation of Crypto Assets Needed for Macro-Financial Stability... Korea Shows Leadership"

International Conference on the 14th: "Digital Currency: Navigating the Changing Financial Landscape"

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), stated on the 14th, "Appropriate regulation and discipline for crypto asset issuers and issuing institutions are necessary to create an infrastructure for a more efficient, interoperable, and accessible financial system," adding, "Korea has recently shown leadership by amending the Anti-Money Laundering Act and preparing new legislation on crypto assets."

Kristalina Georgieva, Managing Director of the IMF, visiting Korea for the first time, is delivering a speech at the Korea-IMF Digital Asset Conference held on the 14th at the Four Seasons Hotel in Jongno-gu, Seoul. This event features panel discussions on the economic impact and prospects of digital currency, directions for virtual asset regulation, the future of money, and the role of central banks. Photo by Yongjun Cho jun21@

Georgieva made these remarks while attending the international conference "Digital Currency: Navigating the Changing Financial Landscape," jointly hosted by the Bank of Korea, the Ministry of Economy and Finance, the Financial Services Commission, and the IMF at the Four Seasons Hotel in Gwanghwamun, Seoul.

In her keynote speech, Georgieva said, "Crypto assets, which have emerged in the financial industry as unsecured or lightly secured assets, have been truly risky assets that caused many people to lose money," and added, "To prevent a future where crypto assets undermine macro-financial stability, it is essential to establish a proper legal framework and set good rules that lead to (desirable) innovation." This is a recommendation emphasizing the need to ensure that the growing presence of virtual assets in the financial environment does not threaten macro-financial stability.

Georgieva noted, "Digital financial systems have advantages in terms of safe and efficient payments and transactions," but also warned, "If not properly regulated, they can weaken the effectiveness of monetary policy and capital flow management measures." To prevent such side effects, she argued that appropriate regulation and discipline for crypto asset issuers and issuing institutions are necessary.

She continued, "We need to consider the impact if crypto assets become widely spread," and said, "We must be prepared to establish the proper infrastructure to achieve public policy goals."

She likened this to the clear rules and solid 24 basic letters that form the foundation of Hangul. "Our goal is to create rules that can prevent the risks of crypto assets and to build an infrastructure for a more efficient, interoperable, and accessible financial system by utilizing crypto asset technology," she said, adding, "The development of Hangul, which has been highly useful from ancient documents to smartphones, is an inspiration." In this regard, she described Hangul as a 'perfect public good.'

Referring to the guidelines in the crypto asset regulatory report that the IMF produced this year in collaboration with the global financial regulatory body, the Financial Stability Board (FSB), she said Korea is taking the lead in related areas. "The key guidelines in the report include not making crypto assets legal tender or official currency, establishing clear tax rules, setting legal standards to prevent money laundering, and cooperating internationally on policies," she said, adding, "Korea has recently shown leadership by amending the Anti-Money Laundering Act and preparing new legislation on crypto assets." Georgieva further stated, "The FSB and IMF are assisting member countries in all these aspects and are ready to do more."

This content was produced with the assistance of AI translation services.