An IMF report revealed that the use of crypto is more popular in corrupt countries. In addition, the IMF has urged authorities around the world to regulate the cryptocurrency industry.
Crypto Industry Needs More Regulations
The International Monetary Fund (IMF) is advocating widespread use of digital assets in countries that could be considered corrupt or have strict capital controls. pointing out that he called for more regulation regarding the crypto industry.
With a market value exceeding 2 trillion dollars, regulations have been brought to the crypto money sector by many countries.
The lack of uniform regulations has been a major concern for global authorities, including the IMF. While countries like the USA have developed a framework to prevent money laundering, terrorist financing and fraud through cryptocurrencies, some countries lack such a framework.
Crypto Assets Are Also Used for Corruption, According to IMF Research
A recent IMF study covering 55 countries revealed that crypto assets can be used to transfer the proceeds of corruption or circumvent capital controls.
IMF study participants, ranging from 2,000 to 12,000 respondents from each country, were asked if they were using or owning digital assets in 2020.
According to the research, it turned out that the use of crypto is more popular in corrupt countries.
Last year, the IMF published a blog post highlighting how cryptocurrency interacts with the traditional financial system, noting that policymakers are finding it difficult to monitor the risks of these interactions due to a lack of regulation.
The IMF also made recommendations on how the crypto industry should be regulated globally, recommended licensing of crypto service providers, and set clear guidelines and requirements for regulated financial institutions exposed to crypto.
While there is no global regulatory framework for crypto yet, several countries have redoubled their efforts to regulate crypto. In the UK, the Financial Conduct Authority (FCA) has been at the forefront of crypto regulations, announcing the addition of five firms to its list of approved crypto service providers in the country recently.
However, there are many countries where crypto is not regulated, such as India. While the country has taxed crypto, it has yet to implement a regulatory framework for how the industry should operate.
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