Crypto responsible for corruption proceeds or avoid capital controls: IMF
A researcher of the International Monetary Fund (IMF) noted that crypto transactions have majority associates in Ponzi schemes and corruptions.
Crypto adoption surging rapidly despite multiple concerns raised by critics from time to time. No doubt the raised concerns related with crypto, especially illegal funding, are reality but here we should forget that all such transactions always remain publicly available. But surely it will be very tough to detect illegal activities associated with crypto for those government agencies, where the regulation framework doesn’t exist.
The International Monetary Fund (IMF) recently published research, on behalf of its own analysis on the crypto industry and related activities.
IMF noted that the majority of the cryptocurrencies transactions have involvement in illegal activities like money laundering and corruption proceeds or avoid capital controls” in 55 countries.
Agency conducted a poll among 55 countries. Through the poll, respondents were asked whether they use their crypto assets or holding in their wallets. And the outcomes noted that the majority of them were not using their holdings. So from our point of view, it hinted that a big amount of crypto assets are not under control of the majority of the investors, instead few dominant players are controlling it.
On the basis of this research, the IMF noted that more potential based regulation framework needed to be imposed on the crypto industry because here we should not focus on fighting but we have to bring perfect regulation on Bitcoin-like assets.
“The best strategy is not to fight but to figure out how to effectively regulate bitcoin.”
IMF research also noted:
“Residents of nations with a well-developed traditional banking sector may be less inclined to feel the need for cryptocurrency.”
Research asserted that a less developed country usually doesn’t have power to control the funds flow to fight against inflation, so in those situations cryptocurrencies may play a better role for citizens to remain stable.
But on the other hand, developed countries have better control on the capital funds of country and they can bring better control on the money flow to/from foreign countries, so in those situations citizens don’t need to go with cryptocurrencies.
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