Crypto use is more prevalent in corrupt countries, IMF study finds

The findings suggest that crypto assets 'may be used to transfer corruption proceeds or circumvent capital controls,' the organisation said, without singling out individual countries. — Photo by Ruben Hanssen on Unsplash

Cryptocurrencies are more popular in countries perceived as corrupt or with strict capital controls, boosting the case for greater regulation of the industry, the International Monetary Fund said in a recent report.

The report shows why countries might want to require intermediaries, such as digital currency exchanges, to implement know-your-customer procedures - ID verification standards that are designed to prevent fraud, money laundering and terrorism financing, the organisation said. Some countries, like the US, have already instituted those kinds of controls.