International Monetary Fund (IMF) chief economist Gita Gopinath says global policy that regulates crypto assets should be developed, rather than banning cryptocurrencies altogether.
In proposing a global policy, Gopinath, who will soon become the deputy managing director of the IMF, stated that countries would not have any control over offshore exchanges that are not subject to their countries' regulations, meaning they could be overlooked entirely.
“Crypto assets are a challenge to ban since many exchanges are offshore and not regulated by a particular country, and there is no guarantee that one can truly ban it."
Since cross-border transactions are complex, no single country can solve this (cryptocurrencies) challenge independently.
Gopinath made the statement at an event hosted by the National Council of Applied Economic Research. Globally, nations are considering ways to regulate crypto assets in light of Gita's remarks.
The Central Bank of Nigeria (CBN) issued a circular on February 5 directing Nigerian banks and other financial institutions to refrain from facilitating crypto exchanges and facilitating transactions in crypto.
All banks and other financial institutions were further instructed by the CBN to identify individuals or entities transacting in cryptocurrency or operating cryptocurrency exchanges and shut down their accounts.
A series of new crypto-fighting measures were announced by the People's Bank of China (PBoC) in September, which included strategic inter-departmental collaboration to suppress crypto activity.
As of this month, mutual funds are not allowed to invest in Bitcoins because of an official Russian central bank prohibition.
Cabinet approval is being sought for a bill regulating crypto assets in India. During the Winter Session of Parliament, the official Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 was expected to be presented, but top government officials expressed low optimism about it.
The Financial Conduct Authority has been urged to limit cryptocurrency firms' use of the term "investment" for marketing purposes by members of Parliament in the United Kingdom.