The International Monetary Fund and Financial Stability Board have released a joint report warning against total bans of cryptocurrencies. The report highlights the difficulties associated with a complete ban, and suggests more reasonable approaches and solutions to the challenges that cryptocurrencies can bring.
The report acknowledges that new technologies like blockchain and cryptocurrencies can create significant risks, such as money laundering, terrorist financing, and cybercrime. But it also argues that a “wider ban does not solve the underlying risks” and poses risks of its own, such as the potential for disruption of economic activities and the disproportionate impact on certain countries.
The report suggests that instead of a total ban, governments should focus on implementing “effective anti-money laundering and combating the financing of terrorism (AML/CFT) frameworks.” It also encourages exploring “appropriate policy measures that reduce risks while allowing the benefits of the technology to be realized.”
The report comes at a time when many governments around the world have expressed hostility or uncertainty towards cryptocurrencies, with some proposing or enacting stricter regulations or outright bans. It appears the two organizations are taking a more thoughtful approach to the issue, which could be beneficial to the industry as a whole in the long run.