IMF Chief Economist: Developed Countries Should Avoid Crypto Restrictions

Gita Gopinas, chief financial officer of the International Monetary Fund (IMF), recently said that developing countries should bypass cryptocurrency bans. He called the overall management of the economy "essential".

Gopinath discussed legal issues related to the entrance to the National Council for Applied Economic Research (NCAER) event. He said a global crypto policy was urgently needed to address these technological issues affecting new markets.

He also said that given the international impact of the exchange, it would not be possible otherwise.

he says: "The regulation of crypto assets is particularly important for emerging markets. This is because cryptocurrency exchanges are offshore, so the restrictions will work, making it easier for people to trade even with restrictions."

After China announced it would ban all banking transactions in September this year, exchanges such as Bitmart and Viki left the country. At the same time, India still has similar restrictions.

Gopinas spoke about the development of “international” rights for cryptocurrencies. It can be used to go through "trade management, investment management and capital measurement," he said.

Michael Saylor, CEO of MIcroStrategy, the world's largest owner of Bitcoin, said the assets are highly valued by the industry. Unlike real estate, Bitcoin can be shipped across the border "at the speed of light" at the best tax order.

European Central Bank (ECB) President Christine Lagarde has also pushed for global cryptocurrency regulations to crack down on "money laundering" features.

With the exception of India and China, most of the other regulatory decisions have been passed, determining the potential for cryptocurrency restrictions. In fact, many U.S. officials see the Chinese embargo as a good time to welcome commerce and drive innovation. These include Ted Cruz, Hester Peirce and Pat Toomey.

Singapore has also decided not to restrict cryptocurrencies. Ravi Menon, head of the Monetary Authority of Singapore, believes cryptocurrencies can be "good for both businesses and people."