The International Monetary Fund (IMF) has recently published a report recommending countries should look towards regulating cryptocurrencies, rather than imposing a complete ban on them, Bloomberg has reported.

The report, which was published this week, suggests such a ban would be “ineffective” and could potentially lead to a “misallocation of resources”. Instead, the IMF has proposed a “risk-based approach” to regulating cryptocurrencies, along with a focus on consumer protection and anti-money laundering measures.

The IMF has stated regulating cryptocurrencies could open up “new opportunities for innovation” and has called for governments to “facilitate the integration of cryptocurrencies into the existing financial system”.

The report suggests that countries should work towards introducing regulations that are “adequately tailored to the risks posed” by cryptocurrencies, as well as taking steps to ensure consumer protection, such as requiring exchanges to register with regulators.