(IMF) The International Monetary Fund has urged governments to include crypto alongside traditional assets in capital control measures to prevent evasion of sanctions.
The IMF says that laws governing capital flow and foreign exchange should be amended if necessary to include crypto assets. It warns that if such measures are not taken, crypto-based evasion will become the norm.
The global financial body says although making significant ruble transfers on crypto exchanges looks “impractical,” some less scrupulous providers may aid sanctions evasion. The entity says sanctions could also be avoided through privacy techniques such as mixers.
The IMF also cited crypto mining as an avenue for the emerging market economies to assist in sanction evasion by exchanging energy for bitcoin. It warns that the ability to stop outflows by regulators during times of financial turbulence is limited.
IMF still contends that there is not much evidence to show that crypto assets are being utilized to evade sanctions. The institution says it is closely monitoring the space.
BTCUSD is up +1.58%, ETHUSD is up +1.94%.
