The United Nations Conference on Trade and Development (UNCTAD) has devised policies to curb the rapid expansion of cryptocurrencies in developing nations. The UNCTAD, the UN body that promotes trade, said cryptocurrencies might reduce the effectiveness of capital that developing nations use to stabilize macroeconomics.
In the report that suggests actions on regulating cryptocurrencies in developing nations, the UNCTAD said the cryptocurrencies, including stablecoins, should be restricted to hold by regulated financial institutions or offering related products to limit their proliferation.
Restricting advertisements related to cryptocurrencies and other high-risk and volatile financial assets is another recommendation by the UN body to avoid people falling into the trap of this lucrative investment tool.
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In order to stay at the top of the curve, the report recommends developing nations to ensure the offering of a safe and reliable public payment system that should cater to the needs of the digital economy.
Cryptocurrency taxation is a hotly debated topic in unregulated nations. The report suggests implementing global tax coordination and information sharing to get a hold of cryptocurrency transactions.
Developing nations are the fertile landscapes for cryptocurrencies. Most of the trading volumes are witnessed in India, Nigeria, Ukraine, and other nations where sophisticated investment tools are not easily accessible. A proper regulatory framework is a pressing priority to ensure its growth and prevent scams and money laundering activities.
Aurora has worked with a leading crypto news site as a Journalist. Aurora is working as Senior Journalist with Coinfea. She loves to travel in her free time.