Informality’ describes unregistered economic activities that lack accessibility to organized markets, credit institutions and advanced technology. Given their vast reservoir of untapped informal assets, cities of the early 21st century particularly in the developing world, are subject to intense waves of formalization, in context of the current capitalist cycle of Globalization. On the basis that Informality is also an urban phenomenon with a particular narrative of historical events, this paper challenges the impulse for formalization as the only course of action towards this huge informal stock. It points out the anomalies and paradoxes inherent Formalization, and also speculates on future areas of research so as to closely study the urban implications of the process.