Govt should have potential to control cryptos, says IMF

The International Monetary Fund (IMF) once again shared its point of view on the capital power of the government over the control of the crypto industry. 

 International Monetary Fund (IMF) is an international financial institution, which have headquarter in Washington DC and is composed of 190 countries. The IMF agency always remains ready to bring its thoughts and point of view on the possibilities in the shake of the global financial Economy and also remain active on the factors affecting the financial system.

On 19 April, the IMF issued its statement on crypto illegal use to bypass the international financial sanctions on Russia, in the Russia vs Ukraine conflict, with its financial stability report. 

The IMF stated that the US government should ensure that it has the potential to control the crypto assets alongside the control of traditional financial systems or assets. 

Issued statements noted that many countries like Greece and Argentina faced critical situations but still they have the potential to control the citizens to use Bitcoin like digital assets with the restriction of no Cash withdrawal from Bitcoin ATMs or with the outsider currency. 

“Laws and regulations for foreign exchange and capital flow management measures should be reviewed and amended if necessary to cover crypto assets,” even if currencies like bitcoin don’t formally count as financial assets or foreign currency,” the IMF stated

IMF also noted that the situation to impose financial sanctions on Russia is challenging because of the cryptocurrencies and these cryptocurrencies are creating a situation to bypass such financial Sanctions.

“The war in Ukraine has brought to the forefront some of the challenges that regulators face in terms of applying sanctions and capital flow management measures.”

Agency also noted that provisions to restrict people to not to transfer high amounts of Ruble/crypto transactions related to Russian addresses are not enough to control the fund’s flow because it is impractical at some level.

According to the IMF, people can use mixing services and can use small amounts of funds to Bypass sanctions easily. 

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