IMF Chief pushes for Global Crypto Regulations, Refrains from all-out bans

Chief economist for the International Monetary Fund (IMF), Gita Gopinath, opined that developing countries should refrain from banning cryptocurrencies. She instead recommends that the industry should receive global regulations.

Gopinath also stated the difficulties of crypto regulations in an event by the National Council of Applied Economic Research (NCAER) last Wednesday. She noted that the policies surrounding crypto need to address the technological gaps between emerging markets.

“Regulating crypto assets and currencies is essential, especially for emerging and developing economies, as banning them may not work as crypto exchanges are located offshore, which makes it easier for an individual to trade in them despite the ban,” she said.

Last September, China announced a ban on all crypto exchanges from their country following the fleeing of Bitmart and Biki. Simultaneously, India is deliberating its stance on the industry as they discuss whether or not to ban these types of assets altogether.

Furthermore, Gopinath emphasized the importance of global policies around crypto as cross-border transactions are commonplace in the markets. Due to these transactions, investors can evade “exchange rate controls, capital controls, and capital flow measures,” she said.

CEO of MicroStrategy, Michael Saylor, highlights that Bitcoin is an extremely beneficial asset from a business perspective. Unlike real estate, BTC is transferable across borders at incredible speeds with tax-friendly jurisdictions, he claims.

Christine Lagarde, the President of the European Central Bank, also pushes for global regulations to counter its decentralized money laundering capabilities.

Source: CryptoPotato