The UNCTAD, which promotes the interests of developing states in world trade, details how crypto is a potential threat to financial stability, the allocation of capital and resources and the security of monetary systems within developing countries.
Citizens of emerging nations, such as Kenya, Venezuela and India, are disproportionately more likely to own digital currency, the UNCTAD says, with 15 of the top 20 countries with the highest share of digital asset ownership being emerging countries.
It calls on developing nations to curb crypto advertising and introduce robust regulation of crypto exchanges, digital wallets and other aspects of decentralised finance. It also suggests banning financial institutions from holding crypto.
