The International Monetary Fund (IMF) wants more rules for Africa’s crypto markets, which are growing faster than any other market in the world.

The collapse of FTX, the world’s third-largest crypto exchange, and the subsequent drop in the prices of Bitcoin, Ethereum, and other major crypto assets have led international monetary funds to call for more consumer protection and regulation in the crypto industry.

Chainalysis says that Africa has one of the fastest-growing crypto markets in the world, but it is still the smallest. In mid-2021, crypto transactions peaked at $20 billion per month. Most people in Kenya, Nigeria, and South Africa use crypto assets to pay for goods and services, but because of how volatile they are, they can’t be used to store value.

The IMF is also worried that crypto could be used to send money out of the region illegally and get around local rules that are meant to stop this from happening. Widespread use of crypto could also make monetary policy less effective, which could threaten the stability of both the financial system and the economy as a whole.

If crypto is used as legal money, as the Central African Republic just did, the risks are even higher said the IMF. If the government holds crypto assets or accepts them as a way to pay, it could put public finances at risk.

The Central African Republic is the first country in Africa and the second country in the world, after El Salvador, to make Bitcoin a legal form of payment. The move has put the country at odds with the Bank of Central African States (BEAC), which is the regional central bank for the Economic and Monetary Community of Central Africa (CEMAC), of which the Central African Republic is a member. It also goes against the CEMAC Treaty. Central Africa’s Banking Commission, which is in charge of keeping an eye on the banking industry for BEAC, has banned the use of crypto for financial transactions in the CEMAC region.

https://altcoin.ng/imf-is-calling-for-stricter-crypto-rules-in-africa/

IMF should just leave crypto alone and face other fiscal policies