International Monetary Fund concerned about cryptocurrencies

Trading in digital currencies puts consumers' money at risk, he said. In addition, the technology opens the door to money laundering and terrorist financing, he said.

The International Monetary Fund (IMF) has expressed concern over cryptocurrencies, as reported by the US Business Channel CNBC reports. Consumers are at risk, it said. One of the problems is that many of the individuals and financial institutions dealing in digital currencies "lack strong operational, governance and risk practices". There is "inadequate disclosure and oversight" in this area, he said.

CNBC also quotes Charles Randell, chairman of the UK's financial regulator, the FCA. He too is concerned: "We simply don't know when or how this story will end, but - as with any new speculation - it can't end well." We don't yet know what will happen over a full financial cycle, he said.

But it's not just consumers' money that's at risk from cryptocurrencies, the International Monetary Fund believes. It also speaks of security risks. Trading opens "unintended doors to money laundering as well as terrorist financing," it says. In addition, there could be some data breaches.

However, cryptocurrencies also offer some advantages. The IMF believes that well-coordinated action should be taken to ensure that these benefits are maintained and vulnerabilities addressed. The issue of cryptocurrencies affects countless people around the world who have invested in them. IMF data shows: All crypto assets surpassed the two trillion US dollar mark in September. That's a tenfold increase from the early 2020s.

The International Monetary Fund's latest estimates could also make many investors and savers from Germany prick up their ears. At well-known German Neobrokers, Fintechs, and Co. many consumers trade with cryptocurrencies and invest in these values. This is possible, for example, at the neobrokers Trade Republic, Scalable Capital or Finanzen.net Zero. Popular German crypto exchanges include the Stuttgart Digital Exchange (BSDEX) and the crypto app of the Stuttgart Stock Exchange Bison. Among others, the service Justtrade of the Hamburg-based Sutor Bank, the Berlin crypto bank Nuri (in cooperation with Solarisbank) or the provider Bitcoin.de offer crypto trading.