Bobos & Wojaks

Get rich or die tryin

Crypto Being Used to Evade Russian Sanctions Says President of the European Central Bank

President of the European Central Bank Christine Lagarde said there are indicators that some Russians are converting rubles into cryptocurrencies and stablecoins to avoid sanctions related to the Ukraine conflict.

On Tuesday, Lagarde spoke at a virtual gathering: “When you see the volumes of rubles stable, into cryptos, at the moment it is the highest level that we have seen since maybe 2021.” 

“Crypto assets are certainly being used, as we speak, as a way to try to circumvent the sanctions that have been decided by many countries around the world against Russia,” she said.

The United States and the European Union have proposed measures to limit Russia’s capacity to transact in dollars and other international currencies. Penalties for major banks and limits on the country’s aristocracy are among them.

This has led to concern that cryptocurrency, which is marketed as an alternative to existing banking systems, could be used by wealthy Russians to avoid the sanctions.russia-crypto-bitcoin-putin

According to Jonathan Levin, co-founder of blockchain-analytics firm Chainalysis, there was no proof of Russia or President Vladimir Putin using cryptocurrencies to avoid sanctions as of last week.

According to Major Loophole and other industry experts, the U.S. According to the Senate Banking Committee, the cryptocurrency market is too small to permit large-scale sanctions evasion by Russians.

According to analytics firm Kaiko, the combined trading volume of ruble-denominated Bitcoin and dollar-pegged USDT stablecoin on crypto exchanges as of March 22 was less than $9 million. That is a small portion of Bitcoin’s global volume, which ranges between $20 and $40 billion.

Fabio Panetta, a member of the European Central Bank’s Executive Board, has cautioned that cryptocurrency might represent a “major gap” at the heart of the financial system.

“The risk of misuse of crypto-assets to circumvent the sanctions against Russia is an important reminder that these markets must be required to comply with the strictest standards — including as regards know your customer, anti-money laundering and disclosure requirements,” he said Tuesday.