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Crypto Regulatory Affairs: IMF proposes crypto-risk assessment matrix

 |  October 9, 2023

By: Chris DePow (Elliptic)

A recent working paper by the International Monetary Fund (IMF) suggests the implementation of a crypto-risk assessment matrix (C-RAM). This tool aims to assist participating countries in better identifying risk indicators within the digital asset space.

Moreover, the proposal, authored by Burcu Hacibedel and Hector Perez-Saiz under the title “Assessing Macrofinancial Risks from Crypto Assets,” aims to equip regulators with the means to respond to and mitigate identified risks.

The paper delineates a three-step approach:

  1. Utilizing a decision tree to evaluate crypto macro criticality or its potential impact on the macro-economy.
  2. Examining indicators akin to those used in monitoring the traditional financial sector.
  3. Identifying global macro-financial risks that influence countries’ systemic risk assessments.

The IMF, known for its involvement in discussing digital assets and the potential development of central bank digital currencies (CBDCs), plays a significant role in shaping global regulatory policy and is actively engaged in financial thought leadership on a global scale.

CFTC Accuses Cryptobravos of Operating a Deceptive Digital Assets Trading Scheme On September 29th, the Commodity Futures Trading Commission (CFTC) initiated a civil enforcement action in the US District Court for the District of New Jersey. The action charged fraud against individuals including Or Patreanu of Israel, Snir Hananya of Italy, Elijah Samson of Germany, Artem Prokopenko of Ukraine, and the Seychelles-based company Expected Value Plus Ltd. operating under various names such as Trade2Get, Coinbull, Cryptonxt, Tradenix, Cryptobravos, Nittrex, and Pinance.

According to the complaint, these defendants allegedly engaged in fraudulent solicitation and misappropriation of tens of millions of dollars from hundreds of victims. They claimed to trade cryptoassets on behalf of these individuals…