UN Report Calls on Low-Income Countries to Ban Crypto Ads and Register All Crypto Wallets

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The United Nations Conference on Trade and Development recently published a report on the dangers of unregulated cryptocurrencies, recommending that low- and middle-income countries ban all cryptocurrency advertisements and regulate crypto wallets.


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According to the UN report, the arrival of digital currencies during the pandemic has been accompanied by risks associated with monetary sovereignty, macroeconomic stability and public policies.

“The use of cryptocurrencies can lead to risks of financial instability,” the UN report states. “If prices plunge, monetary authorities may need to intervene to restore financial stability. Especially in developing countries, the use of cryptocurrencies provides a new channel for illicit financial flows.”

The UN report highlighted that stablecoins pose the highest risk to developing countries, where there is “unmet demand for reserve currencies.”

The report pointed out that the meteoric adoption of cryptocurrencies in recent years has been particularly acute in countries in the Global South. From 2019 to 2021, there has been a 2300% growth in cryptocurrency, with the top 15 adopters being low- and middle-income countries last year.

To minimize risk to emerging economies, the report contained several recommendations: 1) mandatory registration of crypto wallets and exchanges, 2) levying prohibitive fees and taxes on crypto exchanges and transactions, and 3) banning the sale of cryptocurrencies. stablecoins by banks and traditional financial companies. establishments.

He also urged countries to ban crypto-related ads on social media and in public places like buses, as the UK has done. moved TO DO. “This new type of virtual, and often disguised, advertising is forcing policymakers to extend the reach of regulation beyond traditional media,” the report said. “This is an urgent need in terms of consumer protection in countries with low levels of financial literacy, as even limited exposure to cryptocurrencies can lead to significant losses.”

The report also highlighted the benefits of creating a central bank digital currency to function as “a public good”.

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