The International Monetary Fund (IMF) has unveiled a series of unexpected policy changes affecting Bitcoin and altcoins, signaling a tectonic shift in global cryptocurrency regulation. Central to these reforms is the IMF’s updated classification of Bitcoin as a non-produced nonfinancial asset under its newly released Balance of Payments Manual (BPM7), which integrates cryptocurrency guidance into global economic statistics for the first time. This designation separates Bitcoin from the financial account, recording cross-border transactions in capital accounts as acquisitions or disposals of non-produced assets.
The IMF clarified that Ethereum, Solana, and similar protocol-based tokens will now be treated as equity-like holdings if held internationally. For instance, a UK investor holding Solana tokens issued in the U.S. would see these assets classified under foreign equity investments. Stablecoins backed by liabilities, such as Tether or USDC, remain categorized as financial instruments, contrasting with Bitcoin’s non-liability structure.
These changes coincide with binding agreements between the IMF and several nations. El Salvador committed to scaling back Bitcoin’s legal tender status by making acceptance voluntary for businesses and restricting public sector Bitcoin transactions, securing a $1.4 billion IMF financing package. Kenya received technical guidance to align its crypto regulations with global anti-money laundering standards and the Financial Stability Board’s framework, emphasizing international collaboration.
The IMF also hinted at exploring a proprietary cryptocurrency, dubbed “IMFCoin,” intended to bolster the role of Special Drawing Rights (SDR). Christine Lagarde, IMF Managing Director, suggested such a digital asset could stabilize currency markets by adjusting supply based on economic conditions. This follows moves by sovereign entities like Abu Dhabi’s Mubadala fund, which allocated $436.9M to Bitcoin ETPs, and the Czech Central Bank’s proposal to allocate up to 5% of its $140B reserves to Bitcoin.
Meanwhile, U.S.-based investment funds like Wisconsin’s State Investment Board doubled Bitcoin ETP holdings to $321M. Nasdaq’s pending rule change for in-kind Bitcoin ETP redemptions could further institutionalize crypto markets, pending SEC approval. Analysts interpret these developments as part of a coordinated effort to reduce systemic risks identified in the IMF’s joint policy paper with the G20 Financial Stability Board, which prioritizes cross-border regulatory harmonization.
Sources:
IMF updates global standards to include crypto in balance of payments
https://coinbureau.com/news/imf-eventually-issue-imf-coin/
https://cointelegraph.com/news/kenya-crypto-regulation-imf-advice
https://www.vaneck.com/us/en/blogs/rss/
https://cointelegraph.com/news/imf-could-issue-international-cryptocurrency-to-replace-dollar
IMF releases paper on policy and regulation for crypto-assets, commissioned by G20
