The increased use of cryptocurrency around the world has great implications not just for the cryptocurrency industry but for the global economy. Even though they exist purely in the digital space, cryptocurrency is still a form of money and the constant movement of it from one place to another has economic implications. This is why many countries around the world are looking into crypto tax laws and properly monitoring the flow of digital assets. This is needed not only for tax purposes but also to understand what regulation should be put in place for the global economy.
It seems the International Monetary Fund has taken notice as they recently instructed the central bank of the Philippines to begin collecting data on the cross-border flows of crypto assets.
This recommendation was based on data collected in the IMF’s financial statistics mission done in the country in July 2019 and was published as part of a Technical Assistance Report paper on December 30, 2019. The paper focused on the treatment of cryptocurrency assets in microeconomics statistics and this was done by the IMF on the request of the Bangko Sentral ng Pilipinas (BSP).
“The Philippines may become an important market for crypto-assets, as the BSP recently authorized operations for three more virtual currency exchanges (VCE), bringing the total number of approved VCE to 10,” the report says.
The official recommendation of the reporter is that the central bank begins collecting data on cryptocurrency assets in macroeconomic situations and should primarily focus on the movement of these assets across borders. It should be noted that one of the biggest advantages of cryptocurrency is that it is a borderless concept as it does not require any physical movement. To achieve this, it is recommended that the central bank request data on a quarterly basis from cryptocurrency exchanges that will reveal the origin and destination of various Crypto transactions and if possible, the individuals or institutions involved in these transactions.