UN calls for stricter regulation of cryptocurrencies

The United Nations has stated that cryptocurrencies can threaten the financial stability of countries, so UN representatives have called on countries to strengthen measures to control digital assets.

According to a UN policy brief, developing countries have been advised to develop strict rules to regulate cryptocurrencies to prevent possible risks. «This recommendation applies to any speculative or high-risk financial products with uncertain returns,» said Penelope Hawkins, economist and senior economic affairs specialist at UNCTAD (United Nations Conference on Trade and Development).

The UN believes that digital assets can facilitate illegal financial activities and threaten the financial stability of countries.

The main tips for regulating the use of cryptocurrencies include

• introduce high taxes on cryptocurrency transactions;
• to prohibit financial institutions from storing digital assets and offering services related to the use of cryptocurrencies to customers.

It is worth noting that the attitude of many institutions towards cryptocurrencies often changes: from negative, when representatives of the organization are convinced of the «destructive power of digital assets», to positive, when the same government officials begin to believe in the promising future of cryptocurrencies. One recent example is the position of the International Monetary Fund (IMF). Back in May, the IMF believed that accepting bitcoin as an official means of payment would disrupt the transparency of countries' economies. However, a few days ago, IMF representatives noted that digital assets can be an effective alternative to traditional financial products.