A recent report by the International Monetary Fund (IMF) shows that cryptocurrencies are popular in countries with high corruption rates or strict capital control measures.
The IMF has noted that digital assets can be used by bad actors for corrupt transactions or to circumvent financial regulations. However, the IMF did not list each country directly.
The IMF report is said to show the need for countries to adopt customer identification measures before using cryptocurrencies. This is a standard for verifying a user’s identity to prevent fraud, money laundering, and terrorist financing. Some countries, such as the United States, have already enacted such control measures.
The IMF believes that all sectors should take note of the study’s findings, which should be interpreted with caution, however, as the sample size of respondents is small and there may be variations in data quality.