Crypto Use Is More Prevalent in Corrupt Countries, IMF Study Finds

"According to a new International Money Fund (IMF) report, cryptocurrency is much more popular in countries with insecure currencies and corrupt governments..." reports The Street, adding that the report concludes "the best way forward is not fight, but to learn how to better regulate cryptocurrency." The IMF surveyed more than 110,000 respondents in over 55 countries, polling between 2,000 and 12,000 people in each country, about their cryptocurrency use.... "Crypto usage is empirically associated with higher perceived corruption and more intensive capital controls," the study's authors write. "[...] This evidence adds to the case for regulating crypto usage — for example, by requiring intermediaries to implement know-your-customer procedures." Bloomberg adds: The report shows why countries might want to require intermediaries, such as digital currency exchanges, to implement know-your-customer procedures — ID verification standards that are designed to prevent fraud, money laundering and terrorism financing, the organization said. Some countries, like the U.S., have already instituted those kinds of controls. Nations around the world are struggling over the best way to regulate the $2 trillion crypto market, with the level of oversight varying greatly from one country to another. The findings suggest that crypto assets "may be used to transfer corruption proceeds or circumvent capital controls," the organization said, without singling out individual countries.

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