The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

IMF warns that crypto threatens financial stability

As conventional banks, asset managers and regulators embrace crypto, the institution warns this large and volatile asset class poses new risks to the world financial system.

Photo: iStock

At the start of October, the IMF published the second chapter of its latest global financial stability report ahead of the rest of the document, conveying some sense of urgency.

Its 18 pages survey the rapid growth of crypto assets – now worth $2 trillion, a 10-fold increase from early 2020 – identifying fragilities in the emerging ecosystem of exchanges, wallets, miners and stablecoin issuers. It calls on regulators and policymakers to up their game, stating that the crypto boom poses new challenges to financial stability. It adds that while the risks are not systemic yet, they are growing and need to be closely monitored.

The fund enables clients … to further diversify their portfolio in a secure and regulated way
Bernadette Leuzinger, Crypto Finance

Beyond the obvious investor-protection concerns about hacks and so-called rug pulls – the IMF points out that 16,000 crypto tokens have been listed, but only 9,000 still exist today as creators abandon many of them – and excessive leverage of up to 125 on some crypto exchanges, the authors now worry about knock-on effects from crypto volatility on the conventional financial system.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree