When it comes to digital assets, regulators all around the world are quite cautious. Europe, for example, is concentrating on the regulatory side of things. On the other hand, countries like China have imposed a strict ban on all forms of cryptocurrency. In a recent research, the International Monetary Fund demonstrated how outright prohibiting crypto assets could not be a practical long-term precaution against hazards.
The international organization, however, wished for nations to put more effort into addressing those pushing for massive crypto adoption. This might include the need for increased openness or the requirements of citizens for digital payments. The bank also suggested including transactions involving crypto assets in national data. This will facilitate the ongoing assessment of demand and traffic. The IMF said that in terms of worldwide adoption of cryptocurrency in 2022, Latin American nations including Brazil, Argentina, Colombia, and Ecuador placed among the top 20 areas.
It should be remembered, nevertheless, that in May 2022 Argentina outlawed the acquisition of cryptocurrencies. Such economies have, according to the IMF, outlawed the use of cryptocurrency owing to "concerns." These discussions centered on "their impact on financial stability, currency and asset substitution, tax evasion, corruption, and money laundering." However, in this situation, rules could save the day. Midway through 2022, the IMF's research in the area found that 12 of the 19 countries under study shows that they might have already a regulatory framework or are about to create a regulatory framework
In summary
The bank claims that existing laws are working well because they are addressing issues related to corruption, currency substitution, and financial stability, among other things.