UN Calls on Developing Countries to Outlaw Cryptocurrency Ads and Control Crypto Wallets

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Last Updated on July 14, 2022 by Bitfinsider

The United Nations Conference on Trade and Development (UNCTAD) warns of the risk associated with leaving the industry unregulated in a policy brief titled “All that glitter is not gold: The high cost of leaving cryptocurrencies unregulated” published in June. UNCTAD claims that the disadvantages posed to developing countries far outweigh the benefits they may bring to individuals and financial institutions. The policy brief even goes so far as to recommend that developing countries outlaw cryptocurrency-related ads and make all cryptocurrency wallets subject to obligatory registration.

The UN advised that, as with other speculative trades, the gains from cryptocurrency trading and holding are very individualistic in nature and, overall, are outweighed by the risk they pose to poor countries. The brief lists numerous causes to exercise caution.

As an initial concern, cryptocurrency can cause financial instability. Monetary authorities may need to intervene as a result of the price volatility to restore financial stability. The usage of cryptocurrencies could open up a new route for illegal financial activity in poor countries.

Second, the effectiveness of capital regulation, a crucial tool in poor nations to prevent the accumulation of financial and macroeconomic vulnerabilities, is undercut by cryptocurrencies. Last but not least, if cryptocurrencies are allowed to develop uncontrolled, they might supplant national currencies as a common form of payment, endangering the monetary sovereignty of nations.

UN Recommendations

The brief suggests that governments “make the use of cryptocurrencies less attractive” in an effort to reduce the risk that cryptocurrencies pose to developing countries. It says that one way to discourage the usage of cryptocurrencies is to impose taxes on technological transactions and make it necessary for digital wallets and exchanges to register. The UN suggests prohibiting financial institutions from storing digital assets and from providing customers with services relating to cryptocurrencies. In addition, it has been suggested that bitcoin businesses be prohibited or restricted from advertising in public spaces or on social media, citing the “urgent need in terms of consumer protection in countries with low levels of financial literacy.”

The brief’s last recommendation for developing countries is to investigate the construction of a central bank digital currency and create a payment system that would serve the public in the same way that government-built infrastructure does. The brief does concede that “there is now a one-size-fits-all policy response,” even though it does believe that it is important that underdeveloped countries handle the hazards of cryptocurrencies. The UN urges nations to adopt regulations in a proactive manner, stating that “Doing too little or taking action too late will lead to higher costs in the future.”


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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: Above are some affiliate links and we may collect a share of sales or other compensation from the links on this page.
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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