The Chief Economist at the International Monetary Fund, Gita Gopinath, says that a global policy should be implemented to regulate cryptocurrency instead of abolishing it.
Gopinath maintains that jurisdictions seeking to ban digital assets have no control over trading exchanges overseas.
The executive commented at an event planned by the National Council of Applied Economic Research that the local authorities do not regulate the cryptocurrency exchanges operating abroad.
Gopinath is expected to take charge as the deputy managing director of the Washington-based global financial institution.
The stance by the IMF executive comes as nations around the globe search for new ways to curb cryptocurrencies. China has imposed a ban on privately held cryptocurrencies and mining activities.
The legislators in the United Kingdom have asked the financial regulators to limit cryptocurrency usage, while India is pushing for a bill that would regulate the asset class.