UNCTAD warns developing countries of cryptocurrency expansion

Karimi & Associates Law Firm represents according to UNCTAD and Fars News:

UNCTAD, the UN trade and development body, called for expedited action to slow down the pace of cryptocurrency expansion in developing countries.

In recent years, many developing countries initiated the use of cryptocurrency for their international transactions, due to the facilitation of remittances and currency inflation risks.

United Nations Center of Trade and Development announced that besides all the benefits of cryptocurrency, there are issues with the expansion of these digital assets.

UNCTAD stated that “If cryptocurrencies become a widespread means of payment and even replace domestic currencies unofficially (a process called cryptoization), this could jeopardize the monetary sovereignty of countries.”

UNCTAD has published three policy briefs to guide states in controlling cryptocurrency markets and advised them to provide a central bank digital currency or a fast retail payment system.

It has also advised states to “Agree and implement global tax coordination regarding cryptocurrency tax treatments, regulation, and information sharing” to avoid tax evasion.

In Iran, cryptocurrency mining and use is also a controversial subject, and monetary authorities including the Central Bank of Iran are trying to regulate cryptocurrency.

In the latest developments in the case of cryptocurrency, the Central Bank of Iran and the Ministery of Industry, Mine, and Trade announced that crypto mining is allowed only in the case of imports, although the transactions and investment in the field of cryptocurrencies are still illegal in Iran.

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