The International Monetary Fund (IMF) is concerned that digital assets are being used to evade sanctions against Russia.
The IMF said governments should ensure that they have the power to impose capital controls on crypto alongside traditional assets, as it worries about the possibility of Russia avoiding sanctions by using digital assets.
This means that citizens of crisis-affected countries such as Greece and Argentina may find that their access to Bitcoin is potentially limited, as well as restrictions on withdrawing cash from ATMs or accessing foreign currency.
In a financial stability report, the IMF stated:
“Even if currencies such as Bitcoin are not officially counted as financial assets or foreign exchange, laws and regulations regarding foreign exchange and capital flow management measures
The IMF noted that the war in Ukraine highlighted the difficulties faced by regulators in enforcing sanctions and capital flow management measures. The IMF also highlighted the risk that illicit money transfers with crypto-based assets could become more common.
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