Comparative Analysis of Regulatory Approach and Management Practice for Digital Crypto-Currency and the Role of IFIs in Developing Global Regulations

Abstract

The rise of digital currencies like Bitcoin and Ethereum presents both challenges and opportunities for Regulators, Financial Institutions, and International Financial Institutions (IFIs). These decentralized assets can revolutionize the way we transact and store value, but also pose significant risks related to financial stability, consumer protection, Anti-Money Laundering (AML), and countering the Financing of Terrorism (CFT). This research aims to explore the regulatory approaches and management practices adopted by different jurisdictions in response to the emergence of digital currencies and examine the role of IFIs in fostering global cooperation and facilitating the development of a harmonized regulatory framework for accounting standards of digital Crypto-currencies. The research will employ a mixed-methods approach, combining qualitative and quantitative methods. The qualitative component will involve a comprehensive literature review, case studies, and in-depth interviews with policymakers, regulators, and industry experts. The quantitative component will use statistical analysis of data on regulatory frameworks, management practices, and accounting standards for digital currencies. This research will contribute to a broader understanding of the regulatory landscape for digital currencies and the role of IFIs in shaping a global framework for their accounting standards. The findings of the research will inform policymakers, financial institutions, and stakeholders in developing effective and harmonized regulatory approaches, ensuring responsible development and adoption of digital currencies while safeguarding financial stability, consumer protection, and the integrity of the global financial system.