Financial experts with the International Monetary Fund (IMF) have called for caution and regulation as the total market value of all the crypto assets surpassed $2 trillion (N820 trillion) – a 10-fold increase since early 2020.
The experts, Dimitris Drakopoulos, Fabio Natalucci and Evan Papageorgiou, in an article on the IMF’s blog, warned that many of these entities lacked strong operational, governance and risk practices.
They noted that crypto assets offered a new world of opportunities but warned that along with the opportunities come challenges and risks.
The trio explained that crypto exchanges, for instance, have faced significant disruptions during periods of market turbulence, adding that there are also several high-profile cases of hacking-related thefts of customer funds.
The financial experts argued that consumer protection risks remain substantial given limited or inadequate disclosure and oversight.
“For example, more than 16,000 tokens have been listed in various exchanges and around 9,000 exist today, while the rest have disappeared in some form.
The extent of the adoption of crypto assets is difficult to measure, however, surveys and other measures suggest that emerging markets and developing economies like Nigeria may be leading the way.