The International Monetary Fund proposes 9 major frameworks for encryption policy responses: including not granting legal tender status to encrypted assets

The Executive Committee of the International Monetary Fund (IMF) discussed a board paper on elements of effective policy for crypto-assets that addresses questions from IMF member countries about the benefits and risks of crypto-assets and how to craft an appropriate policy response , the framework of nine policy response elements proposed includes: 1. Maintain monetary sovereignty and stability by strengthening the monetary policy framework, and do not grant the status of official currency or legal tender to encrypted assets; 2. Prevent excessive fluctuations in capital flows and maintain the effectiveness of capital flow management measures 3. Analyze and disclose fiscal risks and adopt clear tax treatment for encrypted assets; 4. Establish legal certainty for encrypted assets and deal with legal risks; 5. Develop and implement prudential, conduct and supervisory requirements for all encrypted market participants ;6. Establish a joint monitoring framework for different institutions and departments across the country; 7. Establish an international cooperation program to strengthen the supervision and implementation of encrypted asset regulations; 8. Monitor the impact of encrypted assets on the stability of the international monetary system; 9. Strengthen the global Collaborate to develop digital infrastructure and alternative solutions for cross-border payments and finance. By adopting the framework, policymakers can better mitigate the risks posed by crypto assets, while also taking advantage of the potential benefits of technological innovations associated with them, the IMF said.