Crypto crash did not adversely affect broader financial system, IMF says

International Monetary Fund (IMF) Said The recent plunge in the crypto market did not pose a threat to the wider fiscal stability of the global economy.

The July 26 report, “Peaceful and Uncertain,” said rising inflation and the potential recession caused by the Ukrainian war and the continued blockade of COVID put the world economy in disappointment. Stated.

According to the IMF, the crypto industry has witnessed a “dramatic sale”, but the global economy does not appear to be affected.

Cryptographic assets have experienced dramatic sales, leading to significant losses in crypto investment vehicles and causing the failure of algorithm stable coins and crypto hedge funds, but the spillover to the broader financial system has so far. Limited.

This statement is a departure from the IMF’s previous attitude towards the industry. The IMF has repeatedly called on El Salvador and the Central African Republic to revoke the decision to adopt Bitcoin. Regulators also warned that cryptography could pose significant challenges to policy makers.

Regulators continue to be concerned

The IMF states that the cryptocurrency crash did not adversely affect the broader financial system, but financial regulators in some countries are increasingly concerned about the impact of the cryptocurrency market.

The United States, South Korea, the United Kingdom, and several other regulators have been working to introduce new regulations to better protect private investors.

Meanwhile, the crypto industry is still wise from last quarter’s record loss, with Bitcoin (BTC) plunging by more than 58% to below the $ 20,000 region. Terra’s ecosystem also collapsed during this period, clearing the market for about $ 40 billion.

While the court ordered the liquidation of Three Arrows Capital, popular crypto companies like Celsius and Voyager had to file for bankruptcy.