Crypto prices are trading under increased selling pressure due to ongoing regulatory scrutiny launched by financial regulators. Total market value has decreased by 1.39% over the past day. However, the International Monetary Institution (IMF) has released an action plan for countries to handle crypto assets.
Based on reports, the IMF has asked countries not to give digital assets such as Bitcoin (BTC) legal tender status. El Salvador is the largest example set by a country announcing Bitcoin as legal tender. However, the country plans to open a "Bitcoin Embassy" in the United States to expand the use of the digital asset.
It added that global lender Last Resort stated that its executive board discussed a paper on "effective policy elements for digital assets." This helps IMF member countries with guidance on the matter.
The IMF mentioned that after the horrific crypto market collapse of various digital assets, exchanges, and firms over the past few years, such measures have become a priority for them. However, the top recommendation is to protect financial sovereignty and stability with the implementation of policies. Although this includes not giving crypto assets the status of legal tender.
Back in 2021, the IMF issued a warning for El Salvador when the country announced it would accept bitcoin as legal tender. Later, the Central African Republic continued to do the same.
However, the price of Bitcoin has recorded a decline of more than 2% over the past 24 hours. BTC is trading at an average price of $23,841, at the time of writing. Its 24-hour trading volume increased by 2% to reach $28.6 billion.
