As conflict and crypto become intertwined and moral dilemmas arise, European Central Bank President Christine Lagarde has called for swift ratification of crypto legislation. Authorities are concerned that Russia could use digital assets to evade sanctions. Europe relies on Russia for 40% of its natural gas supply, leading to the imposition of Swift fines. Governments and other organizations that want to put pressure on Russia will cling to any further restrictions they may impose.
Are sanctions sufficient?
The US, European Union, UK, Japan, Canada, Taiwan and New Zealand have imposed sanctions on Russia. Military exports, banks and oil refineries are the main targets of the country’s bans. Many analysts believe that using cryptocurrency to avoid sanctions is part of Russia’s goal. However, blockchain technology is transparent, crypto-powered markets operating on the dark web.
Will the goal of suffocating Russia extend to the cryptocurrency industry?
The crypto industry is still young and these events can easily be turned into a story that benefits the attitude of banks, allowing fiat money to prevail and crypto to disappear. Before long, the war will be more about the money than the people who suffer from it. Entities, governments, financial institutions and the digital age are all currently being tested.
Putin will use crypto
Experts think that Russian organizations will use all possible means to mitigate the impact of the sanctions and that digital assets, which are out of reach for banks, could become one of their tools.
Christine Lagarde, President of the European Central Bank, stated at an informal meeting of the Economic and Financial Affairs Council (ECOFIN):
“If there is a ban, ban or mechanism to boycott or ban something, there are always criminal ways around it, so MiCA needs to be implemented as soon as possible so that we can have a regulatory framework within which crypto assets can be trapped in a regulatory framework.”
This post Are sanctions sufficient? Why the ECB Believes Rapid Crypto Regulation Will Tighten Putin’s Hands
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