IMF Chief admits crypto ban is difficult to impose

The International Monetary Fund (IMF) chief Gita Gopinath on December 15, expressed her thoughts on the state of crypto.

Digital currencies are proving to be a challenge for emerging nations, according to the IMF’s president, and strict regulations are essential. She did agree, however, that the IMF does not have the authority to ban cryptocurrencies. She claimed that because of their decentralized structure, outlawing cryptocurrencies would be difficult.

Other issues with capital inflows and foreign exchange were also mentioned by Gopinath. As a result, she advocates for a unified strategy for their regulation. Speaking about why outlawing digital assets isn’t a viable approach. Gopinath believes that crypto is a particular challenge for the growing markets. She adds:

“It would seem that cryptocurrencies are more attractive for emerging markets compared to developed economies. However, emerging markets have capital flow controls, exchange rate controls, and cryptocurrencies can impact that.

Gita Gopinath’s remarks come during a lecture hosted by the National Council for Applied Economic Research (NCAER), a non-profit think tank based in New Delhi.

India might delay crypto bill

Gopinath’s fresh remarks come at a time when India is attempting to develop crypto laws. The administration of Prime Minister Narendra Modi has stated that digital currencies would not be banned but that they will consider collective efforts by global democracies to regulate the crypto space.

There has been speculation that India will propose crypto regulatory laws during the current Winter Session of Parliament. However, it appears that the government intends to take more time on this. The Winter Session, on the other hand, will finish in a week, and the Union Ministry has yet to clear the bill. This clearly indicates that the Indian investors will have to wait a little longer for any firm news.