UN recommends developing countries impose registration of bitcoin addresses and exchanges

The organization believes that cryptocurrencies pose a threat to the financial stability and the sovereignty of nations

16.07.2022 - 11:15

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What’s new? The United Nations Conference on Trade and Development (UNCTAD) has released a report titled “All that glitters is not gold,” recommending that developing countries should ban bitcoin advertising. The document also said that all addresses and exchanges associated with the digital asset should undergo mandatory registration. The UN acknowledged that the first cryptocurrency has some advantages, but the disadvantages far outweigh them, CryptoNews reports.

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What else did the report say? UNCTAD has advised developing countries to impose a tax on cryptocurrency transactions, as well as ban financial institutions from storing digital assets and offering crypto-related services to customers. Penelope Hawkins, a UN member, explained:

“It’s not about approving or disapproving [of crypto] but noting that there are social risks and costs associated with cryptocurrencies. This is a recommendation that applies to any speculative or high-risk financial product where returns are uncertain.”

According to UNCTAD, cryptocurrencies pose a threat to financial stability by preventing authorities from restricting the flow of capital, as well as replacing national currencies. This creates an environment for illicit activities and a threat to financial sovereignty. As part of the recommendations, developing countries were encouraged to explore the possibility of creating their own central bank digital currency (CBDC).

In April, the CAR became the first African country to adopt bitcoin as legal tender. Also in early July, the CAR launched its own national cryptocurrency, Sango Coin. In July, the launch of the Sango bitcoin sidechain was announced.

El Salvador recognized BTC as legal tender in September last year, following which the authorities repeatedly invested in the asset. The state holds a total of 2381 BTC ($49,1 million at the Binance rate as of July 16, 11:40 UTC).

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