Bitcoin has sunk after the IMF He warned that cryptocurrencies were risky and suggested that Australia's crackdown would fail.
After a volatile year, marked primarily by growth, the world's first digital currency fell below A $ 67,000 on Friday morning for the first time since early October.
This came after the Washington-based International Monetary Fund said that cryptocurrencies were a financial risk.
As Australia prepares to regulate cryptocurrency trading platforms, the IMF is skeptical about the ability of individual national governments to crack down on dubious activities.
"Lawmakers struggle to monitor the risks of this evolving sector, in which many activities are not regulated," he said in a blog post.
"In fact, we believe that these risks to financial stability could soon become systemic in some countries."
Bitcoin has continued to fall as the Australian government prepares to crack down on cryptocurrencies, and the IMF has doubts about a national approach.
The IMF wants the Financial Stability Board, established at the London G20 summit in 2009 during the Global Financial Crisis, to regulate cryptocurrencies.
"Crypto's cross-sector and cross-border mandate limits the effectiveness of national approaches," he said.
"Countries are adopting very different strategies, and existing laws and regulations may not allow national approaches that comprehensively cover all elements of these assets."
Just a month ago, Bitcoin was worth $ 91,000 and Finder co-founder Fred Schebesta predicted it would hit $ 100,000 by mid-November.
While that prediction didn't materialize, Bitcoin's value even now is triple the $ 24,000 level of a year ago.
Investors, however, are facing uncertainty over cryptocurrency trading platforms with major exchange MyCryptoWallet this week appointing administrators.
Treasurer Josh Frydenberg has announced new rules next year that will govern cryptocurrency trading and buy now, pay later apps in the biggest shakeup of Australia's payment system since the mid-1990s.
Widespread mistrust of banks has seen more than 800,000 Australian investors put their money into cryptocurrency since 2018.
After a volatile year, marked primarily by growth, the world's first digital currency fell below A $ 67,000 on Friday morning for the first time since early October after the International Monetary Fund issued a warning. As Australia prepares to regulate cryptocurrency trading platforms, the IMF is skeptical about the ability of individual national governments to crack down on dubious activities.
The Treasury will begin putting together a licensing system for digital currency exchanges, with a policy idea outlined Wednesday just five weeks after a Senate fintech committee recommended regulating that sector.
Canberra bureaucrats will also explore the idea of โโa central bank digital currency, with recommendations by the end of next year.
Figures from the Australian Tax Office showed that 819,000 Australians have purchased a cryptocurrency since 2018, and the number of transactions in 2021 increased by 63 percent compared to 2020.
The Council of Financial Regulators, comprising the Treasury, the Reserve Bank of Australia, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission, will provide recommendations in mid-2022.
The volatility has prompted the Governor of the Reserve Bank of Australia, Philip Lowe, to urge investors to be careful when investing in cryptocurrencies.
"Anyone buying these assets should be careful," he told the Australian Payments Network Summit on Thursday.
'There is still a lot of uncertainty about the long-term usefulness of these assets.
"Before investing, it is best to fully understand the underlying value proposition."
Last month Tony Richards, director of the payments policy section of the Reserve Bank of Australia, warned that cryptocurrency prices could collapse.
Treasurer Josh Frydenberg announced new rules in 2022 that would regulate cryptocurrency trading and buy now, pay later apps in the biggest shakeup of Australia's payments system since the mid-1990s.
`` There are plausible scenarios in which a variety of factors could come together to significantly challenge the current fervor for cryptocurrencies, such that the current speculative demand could begin to reverse and much of the price increases of the last few years could be undone. '' ', He said.
In May, Bitcoin lost a third of its value in a week, falling from $ 74,000 to $ 50,000, after Tesla's billionaire founder Elon Musk changed his mind about accepting Bitcoin as payment for his electric cars.
The 50-year-old mogul argued that cryptocurrency mining, creating Bitcoin by solving complex math puzzles, used too many fossil fuels and his statement caused a 16 percent drop in just one day.
