IMF Says Capital Control Powers Should Include Crypto

Governments should ensure they have the power to impose capital controls on crypto alongside traditional assets, the International Monetary Fund said, as the war in Ukraine continues to raise concerns over sanctions evasion.

That means that citizens of crisis-hit countries like Greece and Argentina could potentially see their access to bitcoin limited alongside restrictions on withdrawing cash from ATMs or accessing foreign currency.

“Laws and regulations for foreign exchange and capital flow management measures should be reviewed and amended if necessary to cover crypto assets," even if currencies like bitcoin don't formally count as financial assets or foreign currency, the IMF said in a financial stability report published Tuesday.

“The war in Ukraine has brought to the forefront some of the challenges that regulators face in terms of applying sanctions and capital flow management measures,” it added, citing the risk that crypto-based evasion will become “more widespread.”