The UN has now officially joined the club of “international” (US-based) crypto haters, already counting the IMF and the World Bank.
In August, the UNCTAD, its arm charged with promoting interests of developing states in world trade, released its recommendations to “curb cryptocurrencies in developing countries”, arguing that crypto undermines their financial stability and domestic resource mobilization.
The report cites the “required policy actions” that developing countries’ authorities should undertake, notably:
➡️regulating crypto exchanges, wallets and DeFi,
➡️banning financial institutions from holding crypto,
➡️redesigning capital controls…
In the meantime, traditional finance in developed countries has (almost) no problem to enjoy crypto speculation and help institutional (or simply conservative) investors get exposure to crypto.
? Last week Chicago Mercantile Exchange, world’s biggest futures exchange, rolled out euro-denominated Bitcoin and Ethereum futures, which completed its already extensive offer of derivatives on these two assets.
? NYSE trades Bitcoin ETFs (exchange-traded fund) based on CME futures, while Canadian and European exchanges offer a great variety of spot crypto ETFs.
? A great number of banks in the US, Germany and Switzerland propose extensive crypto services, from custody to investment, trading or OTC deals.
? There are still some obstacles to certain products in certain jurisdictions, like spot ETFs in the US, but nothing that couldn’t be eventually overcame: Grayscale, an American crypto fund with almost $19 billion of assets under management, is suing the SEC because it refused to change its Bitcoin trust into a spot ETF.
All in all, the UN’s directive implies that only developed countries have right to grow their crypto financial sector. How’s that for equality?