Bitcoin, dangerous? IMF calls for control of cryptos

Control alert in cryptos! – The International Monetary Fund (IMF) has long adopted a policy of disparagement of Bitcoin (BTC) and cryptocurrencies to discourage their adoption. Lately, the sanctions against Russia have thrilled the IMF, which fears a massive adoption of cryptos to circumvent them.

IMF calls for international regulation of cryptocurrencies

In a report on global financial stability published on April 19, 2022, the IMF states that risks to this stability have increases due to the war between Ukraine and Russia. Thus, the IMF directly addresses the issue ofpotential use of cryptos to circumvent the sanctions imposed on Russia. Moreover, he adds that this use, if it becomes a reality, could threaten the stability of existing financial systems.

Cover of IMF Global Financial Stability Report April 2022 – Source: imf.org

As such, according to the IMF, cryptocurrencies could be used as a means of circumventing the identity checks in capital flowsby performing anonymous transactions from abroad. This is why the IMF encourages global policymakers to develop legal standards for cryptocurrencies to address these concerns.

In addition, the IMF recommends that countries focus on implementing the standards set out by the Financial Action Task Force (FATF)such as the one that asks exchanges to communicate the identification elements of sender and receiver in a crypto transaction.

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DeFi also in the sights of the IMF

Furthermore, the IMF report focuses on the decentralized finance (DeFi) which he considers a new form of intermediary. It thus urges global regulators to work on the legal issues raised by DeFi and in particular that of the regulation of an entity that has no centralized anchor point.

“Regulation should focus on the elements of the crypto ecosystem that enable DeFi, such as stablecoin issuers and centralized exchanges. The authorities should also encourage DeFi platforms to equip themselves with a robust governance system (…). »

Excerpt from the IMF report

In last decemberthe IMF had encouraged countries to come up with a “comprehensive, coherent and coordinated” policy applicable to cryptocurrencies.

The IMF wants to regulate cryptos on a global scale. That gives you enough time to set up your own investment strategy! To help you, an exceptional offer awaits you: up to €200 in cryptocurrencies offered when you register on the SwissBorg platform (affiliate link, for a minimum deposit of €50)

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