The IMF unveiled a nine-point plan for treating digital assets as legal tender. #1: Deny cryptocurrencies, like bitcoin, legal tender status.
The IMF studied “Elements of Effective Policies for Crypto Assets,” which looked at what countries should do about crypto assets, writes Reuters.
Following the collapse of numerous crypto exchanges and assets in the past few years, efforts to regulate digital assets have become a priority for authorities, the fund said.
The most important recommendation is to strengthen the monetary policy framework. This includes not giving official currency or legal tender status to crypto-assets.
The IMF was critical of El Salvador in late 2021 when the Central American country became the first to adopt bitcoin as a legal tender. The Central African Republic has since adopted cryptocurrencies as a means of payment.
Another thing to do is stop money from flowing into the country too much. Countries can do this by having clear tax rules and laws about cryptocurrencies.
The IMF says countries should create international arrangements to improve oversight and enforcement of regulations and establish ways to monitor the impact of cryptocurrencies on the stability of the global monetary system.
Binance suspends dollar transfers
The company said that 0.01 percent of their active monthly users used dollar bank transfers and added that they are “working hard” to get the service up and running again as soon as possible.
Binance US, a subsidiary of the company that falls under the jurisdiction of the US Department of the Treasury’s Financial Crimes Enforcement Network, said in a tweet that it was not affected by the suspension, CNBC reported. From this, they concluded that the move by the Binance exchange only applies to non-US customers who transfer money to or from dollar bank accounts.