According to a report prepared by the experts of the International Monetary Fund (IMF), digital currencies are popular in countries with a high level of corruption.
According to the document, officials in these countries have turned to cryptocurrencies in order to hide their real financial situation from supervisory authorities.
IMF experts claim the solution to this problem is the introduction of legislation to improve the transparency of the digital assets market, with one of the most important stages in the regulation of cryptocurrencies being the identification of users of cryptocurrency exchanges.
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The IMF has highlighted developed countries are already moving in this direction. The introduction of a user identification mechanism will minimize the risks of criminal use of virtual currencies.
Despite the fact that the market capitalization of cryptocurrencies already exceeds $2 trillion, many countries still lack a system of control over the holders of digital assets.
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The International Monetary Fund has reacted negatively to the legalization of Bitcoin in El Salvador last year. In particular, the regulator has repeatedly demanded that the Latin American state repeal the BTC law, as it sets a dangerous precedent for the global financial system.