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Digital Development Global Report Volume 3, Issue 12 (2025/3/17-2025/3/23)
This issue summarizes the IMF's new regulations on crypto assets for reference.
I. IMF New Regulations on Crypto Assets
TechFlow news, on March 23, according to CrowFund Insider, the International Monetary Fund (IMF) released the seventh edition of the Balance of Payments Manual (BPM7) on March 20, for the first time incorporating digital assets such as cryptocurrencies into the global economic reporting framework, marking the first update since 2009. According to the new framework, digital assets are classified into fungible and non-fungible tokens, and further categorized based on whether they bear related liabilities:
• Assets like Bitcoin without endorsement are classified as non-productive non-financial assets, categorized under the capital account;
• Digital currencies like stablecoins supported by liabilities are viewed as financial instruments;
• Platform tokens such as ETH and SOL may be classified as equity-like instruments if held across borders;
• Staking and cryptocurrency earnings activities are viewed as dividend income sources;
• Mining and staking-related services are recognized as exportable computer services;
IMF plans to promote widespread adoption of BPM7 and the latest System of National Accounts by 2029-2030.
Fungible tokens (FT) refer to digital tokens with interchangeability, which can be mutually substituted. Each fungible token is identical in value and function to other tokens of the same type, just like legal tender where one yuan is completely equivalent and interchangeable with another yuan. For example, Bitcoin and similar cryptocurrencies are fungible tokens that can be divided, combined, and exchanged equivalently in different transactions, with their value primarily determined by market supply and demand and investor expectations.
Non-Fungible Tokens (NFT) are digital assets with uniqueness and individuality, where each NFT has its distinct identifier and attributes that cannot be replaced by other tokens. Like artworks or collectibles in the real world, each NFT has a unique value, typically based on its distinctive design, content, or association with specific events or individuals. For instance, some blockchain-based digital artworks, virtual lands, and game items exist in NFT form, with ownership and value recorded and verified through smart contracts on the blockchain, featuring immutability and traceability.
II. Regulatory Impact
IMF's first inclusion of cryptocurrencies in economic statistical standards may influence cryptocurrency regulation.
(I)Clarifying Regulatory Scope and Objectives
IMF classifies cryptocurrencies based on their nature in practical scenarios, dividing them into fungible and non-fungible tokens and further subdividing them based on corresponding liabilities. For example, Bitcoin is viewed as a non-productive non-financial asset, stablecoins are categorized as financial instruments, and platform tokens are considered "equity-like holdings". This provides crucial guidance for regulatory authorities to clarify the nature of different cryptocurrencies, helping them develop targeted regulatory policies and determine focus and methods.
Inclusion in statistical standards indicates that regardless of legal recognition across different regions, cryptocurrencies potentially impact macroeconomic and financial stability. Regulators need to monitor how cryptocurrency market volatility transmits to the traditional financial system, focusing on preventing systemic risks, such as strengthening regulation of crypto assets like stablecoins that might affect monetary and fiscal policies, avoiding sovereign currency replacement, and maintaining financial system stability.
(II)Enhancing Regulatory Effectiveness and Precision
Incorporating cryptocurrencies into economic statistical standards emphasizes establishing more comprehensive data collection, storage, and reporting systems. Global regulators can thus timely and accurately grasp cryptocurrency market scale and transaction flows, such as tracking cross-border cryptocurrency transactions and understanding capital movements to better implement regulation and prevent illegal activities like money laundering and terrorist financing.
Based on IMF's classification, regulatory authorities can implement differentiated regulation for different cryptocurrency types according to their scenarios, natures, and risk characteristics. For high-risk cryptocurrencies like algorithmic stablecoins, they can strengthen capital adequacy and liquidity management requirements; for platform tokens, they can reference certain securities regulation principles to standardize issuance and trading, protecting investor interests.
(III)Promoting International Regulatory Coordination and Cooperation
IMF's standards provide a unified statistical framework, helping countries reach consensus on cryptocurrency regulation, reducing regulatory differences and arbitrage opportunities. Countries can develop and follow similar regulatory rules, such as unifying standards in anti-money laundering and taxation to prevent cryptocurrency transactions from concentrating in regions with lenient regulations, thereby reducing regulatory difficulties.
Given cryptocurrencies' prominent cross-border transaction characteristics, regulatory authorities need to enhance collaboration. Through information sharing and joint law enforcement, they can collectively address transnational cryptocurrency crimes and financial risks, such as cooperating in tracking cross-border crypto asset flows and combating international money laundering to maintain international financial order.
(IV)Improving Market Transparency and Investor Protection
After crypto assets are included in economic statistical standards, relevant entities might need to follow stricter information disclosure requirements. This includes basic project information, financial status, and risk factors, enabling investors to comprehensively understand investment targets, make rational decisions, and reduce investment risks caused by information asymmetry.
Regulatory authorities can seize this opportunity to strengthen investor education, raising awareness about cryptocurrency risks through promotional activities that introduce cryptocurrency characteristics, risks, and legitimate investment channels, enhancing investors' self-protection capabilities.
III. Other International Organizations
Besides IMF, other international organizations are also monitoring crypto assets.
Bank for International Settlements (BIS): The BIS President previously suggested that countries strengthen control to prevent cryptocurrencies' "aggressive expansion" and protect investor and consumer rights. While acknowledging new technology's potential in monetary domains, they believe Bitcoin has numerous issues, describing it as a "bubble, Ponzi scheme, and environmental disaster combined", advocating for strict governmental regulation of cryptocurrencies, combating money laundering, following the "equal risk, equal regulation" principle, and preventing virtual currencies from threatening financial system stability. Additionally, BIS has outlined a blueprint for supporting central bank digital currencies (CBDC) and a global unified ledger for tokenized assets, exploring various application cases for integrating "smart contract" innovations into unified ledger design.
Financial Stability Board (FSB): In July 2023, FSB released an international regulatory framework for crypto assets, offering high-level regulatory recommendations for crypto assets and "global stablecoins". The aim is to enhance global consistency in crypto asset industry regulation, reduce regulatory gaps, prevent regulatory arbitrage, and effectively mitigate financial risks. They proposed three principles: "same business, same risks, same regulation", "flexibility", and "technological neutrality", requiring regulatory authorities to possess appropriate powers, tools, and sufficient resources to regulate crypto assets. They also established requirements for crypto asset issuers and service providers across governance frameworks, risk management, and data management.
United Nations (UN): In 2016, the United Nations established the World Assets Digital Cryptography Committee (WADCC) and released a report titled "The Role of Cryptocurrencies and Blockchain Technology in Establishing a Stable Financial System", proposing suggestions to build a more robust financial system using blockchain technology. This demonstrates the United Nations' attention to cryptocurrencies and their underlying blockchain technology in the financial field, as well as its emphasis on potential financial system transformations.
